Consolidation of Financial Statement is required when the parent has control of its subsidiaries and Accounting for Associate is required when the parent has significant influence of its Associate. In your own words, compare the difference and what are the characteristics of control versus significant influence. List at least 3 factors for Control and 5 factors for Significant Influence 1

Consolidation of Financial Statement is required when the parent has control of its subsidiaries and Accounting for Associate is required when the parent has significant influence of its Associate. In your own words, compare the difference and what are the characteristics of control versus significant influence. List at least 3 factors for Control and 5 factors for Significant Influence 1

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 12P

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Which is an incorrect statement below? A. The name of the parent and the ultimate parent of the group shall be disclosed as part of other disclosures.B. All accounting policies must be disclosed by the entity.C. Related parties have the ability to control the other party.D. Significant influence is the power to participate in the financial and operating policy decision of an entity, but not control of those policies.
According to the principle of Conservatism it is defined that whenThere are many ways to determine accounting results (all equally acceptable) the method that has the least favorable effect on net profit and assets should be chosen.Give two examples of the choice of accounting practices and then document how the principle of Conservatism protects the Shareholders and financiers of an entity
S1: Control is the power to govern the financial and operating policies of anentity so as to obtain benefits from its activities. S2: Consolidated financialstatements shall be prepared using uniform accounting policies for liketransactions and other events in similar circumstances. A. Only S1 is correct.B. Only S2 is correct.C. Both statements are incorrect.D. Both statements are correct.
The primary objective of management accounting is to provide thea.shareholders with useful information for decision makingb. creditors with useful information for decision makingc. management with information useful for planning and control of operationsd. government agencies with information for tax and other compliance purposes
The objective of general-purpose financial reporting is? to provide users with financial information that implies total freedom from error to provide companies with the option to select information that favors one set of interested parties over another O to provide financial information about the reporting entity that is useful to present and potential equity investors, lender and other creditors in making decisions in their capacity as capital providers to provide a metric for financial information used to determine when the boundary between two or more entities should disregarded and the entities considered to be a licensing arrangement
Which of the following is an example of a principal and an agent respectively Oa Shareholder, Manager b. Manager, owner Ⓒc Company, bondholder Od Shareholder, consume
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The primary objective of management accounting is O A. to provide management with information useful for planning and control of operations. O B. to provide banks and other creditors with information useful in making credit decisions. O. C. to provide the relevant taxation authorities with information about taxable income. O D. to provide shareholders and potential investors with useful information for decision making.
9. Which of the following least describes the relatedness of Accounting and Financial Management? A) Both functions take into consideration accountability. B) Both are concerned with the proper preparation and presentation of Financial Statement. C) Both are concerned with the relevance and timeliness of financial information. D) Both deals primarily with financing and investing decisions. 10. Which of the following does not pertain to a Limited Liability Company (LLC) or Limited Liability Partnership (LLP) A) The owners of an LLC are referred to as members, and these owners may be individuals, partnerships, corporations, or other entities. B) LLC is not considered a form of business for tax purposes so it must file as a corporation, partnership, or sole proprietorship. C) Both special type of form of business may enjoy the benefits of limited liability. D) LLCs and LLPs are de facto businesses and are not legally accepted forms of business organization. 11. Which of the following is…
S1: Only agency sales and operating expenses determines the sales agency’s profitability. S2: The primary advantages of the system described is that it is simple to establish and maintain. Only S1 is Only S2 is Both statements are Both statements are 2. S1:Controlis the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. S2: Consolidated financial statements shall be prepared using uniform accounting policies for like transactions and other events in similar circumstances. Only S1 is Only S2 is Both statements are Both statements are 3. In an acquisition where there is an exchange of assets for assets, how does the ownership structure of the acquiree change? The net assetsdecrease There is no change in the netassets The net assetsincrease The net assets may increase, decrease or remain the
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What are the six major factors that distinguishmultinational financial management from financialmanagement as practiced by a purely domesticfirm?