Investor Ltd owns 30% of Investee Ltd.During the year,Investee Ltd had reported a net profit of $100000 and paid no dividends for the year.Which of the following statements best describes the impact of the investment in Investee Ltd to Investor Ltd's financial ratios?
A) Current ratio will improve;
B) Quick asset ratio will deteriorate;
C) Sales turnover will improve;
D) Inventory turnover will deteriorate;
E) Earnings per share will improve.
Correct Answer:
Verified
Q57: Investments are commonly classified into the following
Q58: In determining the existence of 'significant influence',and
Q59: Quartermain Limited has the following investments: Christian
Q60: According to AASB 139,an equity investment:
A) must
Q61: On acquisition of the investment in associate,any
Q62: Which of the following statements is not
Q63: On acquisition of the investment in associate,any
Q64: Investor Ltd owns 30% of Investee Ltd.During
Q65: After an investor has reduced its investment
Q66: Which of the following statements is not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents