
Subsidiary:
Subsidiary is the part of parent. The companies who make investment in the parent companies are the subsidiary companies.
Parent:
The company having more than 50% controlling is parent. The investee invests in the parent company to earn high percentage of return.
Interest Revenue:
The investor invest in the bonds of companies and earn a fixed percentage of interest in return of the amount invested by them in the company, So the interest receive by the investor is known as the interest revenue and it is the income of the investor.
Current Assets:
Current assets are assets which are expected to be converted into cash and cash equivalent within a year. They are also used to pay the current liabilities of the company. It includes cash, short term investment,
Fair Value:
The fair value is the original value of the investment. The companies have to calculate the value of investment yearend with the help of fair value to record in the books of accounts.
Equity Method:
It is a method of ascertaining the
To identify: Select the term or phrase for the given statement.

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Chapter C Solutions
GEN COMBO FINANCIAL AND MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
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- Geisner Inc. has total assets of $1,000,000 and total liabilities of $600,000. The industry average debt-to-equity ratio is 1.20. Calculate Geisner's debt-to-equity ratio and indicate whether the company's default risk is higher or lower than the average of other companies in the industry.arrow_forwardHy expert give me solution this questionarrow_forwardBaker's Market began the current month with inventory costing $35,250, then purchased additional inventory at a cost of $78,400. The perpetual inventory system indicates that inventory costing $82,500 was sold during the month for $88,250. An inventory count at month-end shows that inventory costing $29,000 is actually on hand. What amount of shrinkage occurred during the month? a) $350 b) $1,150 c) $1,750 d) $2,150arrow_forward
- A pet store sells a pet waste disposal system for $60 each. The cost per unit, including the system and enzyme digester, is $42.50. What is the contribution margin per unit? A. $15.00 B. $17.50 C. $12.25 D. $19.00arrow_forwardNarchie sells a single product for $40. Variable costs are 80% of the selling price, and the company has fixed costs that amount to $152,000. Current sales total 16,000 units. What is the break-even point in units?arrow_forwardA company sells 32,000 units at $25 per unit. The variable cost per unit is $20.50, and fixed costs are $52,000. (a) Determine the contribution margin ratio. (b) Determine the unit contribution margin. (c) Determine the income from operations.arrow_forward
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