The various terms are used here. The terms that are used here are – a. Subsidiary – A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership. b. Parent – A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary. c. Controlling – When a company purchases an investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee. When a company has significant control over the other company in case, it is treated as controlling company. The mentioned terms have been discussed. To complete: The descriptions by filling in the blanks using the terms given.

Question

Want to see the full answer?

Answer 1

Question

Chapter 15, Problem 13QS

To determine

Concept Introduction:

The various terms are used here.

The terms that are used here are $-$

a. Subsidiary $-$

A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership.

b. Parent $-$

A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary.

c. Controlling $-$

When a company purchases an investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee.

When a company has significant control over the other company in case, it is treated as controlling company.

The mentioned terms have been discussed.

To complete:

The descriptions by filling in the blanks using the terms given.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

- Effects Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments Mixing, Refining, and Packaging. On January 1, the Refining Department had 4,000 gallons of partially processed product in production. During January, 30,000 gallons were transferred in from the Mixing Department, and 30,000 gallons were completed and transferred out. At the end of the month, 4,000 gallons of partially processed product remained in the Refining Department. See additional details below. Refining Department ending balance at January 31 Percent completed for materials cost: 94% Percent completed for conversion cost: 76% What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department? a. 3,040 units. b. 30,000 units. c. 3,760 units. d. 33,040 units.

General Accounting Question give true answer

A company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest. What would the effect of this transaction be on the company's current month- end accounting equation? A. $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in Stockholders' Equity. B. $16,905 increase in Assets; No effect on Liabilities; $16,905 increase in Stockholders' Equity. C. $25,905 increase in Assets; $25,905 increase in Liabilities; No effect on Stockholders' Equity. D. $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905 increase in Stockholders' Equity.