Why is the event Issue Debt often modeled as a separate event entity?
What will be an ideal response?
The event Issue Debt is a special kind of cash receipt. It is often modeled as a separate event entity because it contains distinctly different attributes from those associated with cash receipts that arise from the Sales event, such as the face amount of debt issued, total amount received, date issued, maturity date, and interest rate.
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Your author cites Ockham's razor—a logical approach which asserts that, when trying to understand a situation, the simplest explanation is usually the right one
What does this mean in the context of the K-Mart-Wal-Mart comparison in this chapter?
The equity method is usually more appropriate for accounting for investments where the purchaser does not have significant influence over the investee
a. True b. False Indicate whether the statement is true or false