The Following Information Relates to Questions Nero Ltd Purchased a 30

question 4

Multiple Choice

The following information relates to questions Nero Ltd purchased a 30% per cent shareholding in Bianco Ltd on 1 January 20X8 for $180,000. Bianco Ltd’s assets recorded at fair values and its owners’ equity, totalling $520,000, was represented as follows: $\begin{array} { l r } \text { Share capital } & \$ 260,000 \\\text { Reserves } & \$ 120,000 \\\text { Retained profits } & \$ 100,000 \\\text { Asset revaluation reserve } & \$ 40,000\end{array}$
During July 20X8, Bianco Ltd paid an interim dividend of $18,000. At 31 December 20X8, Bianco Ltd reported: $\begin{array}{ll}\text { Profit for 20X8 } & \$ 48,000 \\\text { Final dividend payable } & \$ 14,000 \\\text { A transfer to the general reserve } & \$ 10,000 \\\text { Increase of the asset revaluation reserve to } & \$ 70,000\end{array}$
-Assuming that Nero Ltd applies the equity method in its own books the entry to record the dividend receivable from Bianco Ltd at 31 December 20X9 would include:

• A) a credit to the dividend revenue account.
• B) a credit to the investment in associate account.
• C) a debit to the dividend revenue account.
• D) a debit to the investment in associate account.

Grasp the basics of bond amortization methods and their financial implications.

Understand the rights of bondholders versus stockholders in a corporation.

Comprehend the calculation and significance of interest expense related to bonds.

Recognize the accounting treatment and impact of bond redemption.

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Definitions:

Low-Exchange Relationship

A type of relationship in organizational settings where there is minimal personal connection and reciprocity between parties involved.

Follower's Role

The responsibilities and behaviors expected from individuals who support and execute a leader's vision and directives.

Achievement-Oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and showing confidence in team members' abilities.

House's Path-Goal Model

A leadership theory that proposes leaders can adjust their behaviors to motivate followers, influence satisfaction, and achieve organizational objectives.