Financial Reporting Analysis - Desklib

Financial Reporting Analysis
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Table of Contents
Question 10......................................................................................................................................3
Question 11......................................................................................................................................3
B Working calculation.................................................................................................................4
C Effect of omission....................................................................................................................4
Question 12......................................................................................................................................4
Question 13......................................................................................................................................5
REFERENCES................................................................................................................................8
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Question 10
1.
B. Statement of financial position
2.
B. both a debit and a credit entry
3.
A. Current assets
4.
B. Normally Preference shares have no votes at meetings of shareholders
5.
A. give the holder the right to buy or sell a certain number of shares by a specified date at a
stipulated price
6.
A. current, 12 months, before
7.
C. A parent should own majority shares in the subsidiary
D. A parent should control the majority of the votes at subsidiary’s shareholders’ meetings
8.
D. decrease in income tax expense
9.
A. $1,037,800.
10.
A. Decrease in trade receivables turnover
B. Increase in inventory turnover
Question 11
Consolidated financial statement is being prepared at the time of acquisition and it is also
prepared by the parent and also claim the resources of the parent company as well (Ishii and et.al
2021). At the time of preparing consolidated statement all the assets and liabilities of parent
company added Together and consolidated adjustments have been prepared. The rent receivable
of $600 and it has been included $150 as well. Receivables are being reported as income in the
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