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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
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Chapter C Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
- NDB Company has a factory with fixed costs of $650,000 and a production capacity of 225,000 units annually. Its product sells with a 36% contribution margin. The target profit is $470,000. At full production, what does the selling price per unit need to be? Show your complete solution.arrow_forwardNonearrow_forwardGeneral Account Queryarrow_forward
- Solve asap tutor. general accountarrow_forwardQuestion related to financial accounting: During the current year, Carl Equipment Stores had net sales of $540 million, a cost of goods sold of $367 million, average accounts receivable of $64 million, and an average inventory of $53 million. Assuming a 365-day year, the average number of days required for Carl Equipment to sell its inventory is?arrow_forwardProvide answer general accountingarrow_forward
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