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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.
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Chapter 15 Solutions
Fundamental Accounting Principles -Hardcover
- financial accountingarrow_forwardNeed true option general Accountingarrow_forwardPam Pet Foods Co. reported net income of $52,000 for the year ended December 31, 2005. January 1 balances in accounts receivable and accounts payable were $30,000 and $28,000, respectively. Year-end balances in these accounts were $27,000 and $31,000, respectively. Assuming that all relevant information has been presented, Pam's cash flows from operating activities would be__.need helparrow_forward
- The following information relates to Westline Traders for a trading year. Calculate the overhead expenses as a percentage of the net sales. Details Sales Purchases Sales Returns Purchases Returns Amount $625,000 $410,000 $25,000 $30,000 Opening Stock Value $50,000 Closing Stock Value $55,000 Overhead Expenses $205,000arrow_forwardNeed help with this financial accounting question please answerarrow_forwardAnswerarrow_forward
- expert of general account answerarrow_forwardPam Pet Foods Co. reported net income of $52,000 for the year ended December 31, 2005. January 1 balances in accounts receivable and accounts payable were $30,000 and $28,000, respectively. Year-end balances in these accounts were $27,000 and $31,000, respectively. Assuming that all relevant information has been presented, Pam's cash flows from operating activities would be__.arrow_forwardcan you please solve thisarrow_forward
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