ACCT1501 - 2003 S1 Final Q1 (1 Viewer)

[tempco]

posted on webct, might as well post here too.

seems like i've got a huge gap in my acct knowledge... equity accounting?

what week was this covered in? i haven't come across the terms
'investment in xxx' or 'share of associate profits'...

after reading through the answers, i've made a few conclusions. correct
me if i'm wrong:

40% of all earnings made by whinge is DRed into blog inc's cash account.

when dividends are given out by whinge ltd, its CR investment because
the dividend is paid from retained earnings of whinge ltd, which reduces
the total money value of whinge ltd.

much appreciated.

 

[Minai]

Hey, that was the final I did! (s1 2003)

Equity accounting...basically accounting for an entity's investment in associates etc that it does not have control over (ie, among other things, less than 50% ownership)

And you're pretty much correct (if memory serves me)
DR Dividend recievable/Cash
CR Investment in associate

 

[launcher169]

well i replied in webct.....so i should reply here also

well i thought exactly as you did nekkid when i did then exam....but then i looked at the lecture notes for the week when we covered owners' equity with diane, and we actually did go over most of the stuff that is asked in the exam

 

[tempco]

but then i looked at the lecture notes for the week when we covered owners' equity with diane, and we actually did go over most of the stuff that is asked in the exam

thanks for the replies, and could you post up the page no. of the CRK you're referring to? i can't seem to find it. :\

 

[meyero]

don't know what you are talking about but i am 100% sure we never did accounting for investments.

 

[Idyll]

We didn't cover that this year

 

[Eagles]

wow, new people suddenly posting a commerce/economics students!!

 

[launcher169]

its in i think week 13 lectures....investments i dont think are covered in the exam....but the process to do the dividends are...like most of that stuff is from the perspective of blog, not whinge, so this puts a different perspective all together

i think a similar question popped up in one of the other practise exams

2004 session 1 question 2 i think?