Question 1   An economic advantage of a business combination includes   Question 2   The consolidation process is performed   Question 3   A sign of significant influence in accounting for equity investments would be:    Question 4   An arm's length transaction, that would be reflected in consolidated financial statements would include       Question 5   U

Question 1  

An economic advantage of a business combination includes

Question 2  

The consolidation process is performed  

Question 3  

A sign of significant influence in accounting for equity investments would be:

Question 4  

An arm's length transaction, that would be reflected in consolidated financial statements would include 

Question 5  

U.S. company that has purchased inventory from a German vendor would be exposed to a net exchange gain on the unpaid balance if the

Question 6 

A firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.90 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value of the generator if the two-transaction method is used?

Question 7 

Assuming that the functional currency of a foreign subsidiary is not the local currency, which of the following accounts would be re-measured at the historical rate?

Question 8  

For financial accounting purposes, assets of an individual partner contributed to a partnership are recorded by the partnership at

Question 9  

Callie was admitted to the Adams & Beal Partnership four years ago. The partnership has a deficiency at year end for the current year.  How could this deficiency be accounted for?

Question 10 

The following is the priority sequence in which liquidation proceeds will be distributed for a partnership

Question 11  

In a lump-sum liquidation of a partnership

Question 12

When a partner withdraws from a partnership and the remaining partners acquire that interest

Question 13

You are the controller of A company that has just recently merged with B company. You are asked to communicate with top management on how you would account for the merger.  While you are doing some research, you find an old accounting textbook left on the bookshelf by your predecessor who retired after 30 years.  Based on your readings in this book you are thinking about using the pooling method for this transaction. This method

Question 14

You are the controller of Parent company and have been asked to communicate your findings on a situation that is in the best interest of the company. Parent company would like to sell bonds to obtain financing. Parent company owns an 80% interest in Subsidiary company and interest rates are down. Subsidiary company is smaller than Parent company and has a lower credit rating. Parent company would like to reduce interest costs on Subsidiary company debt. You have decided

Question 15

Company A invested in Company B.  The market value of company B has significantly declined in the current year and this trend is predicated to continue.  Company A uses the equity-method and as controller would be acting ethically if you:

Question 16

You have just been hired by ABC Inc. and they are preparing consolidated statements.  The company has had some difficult financial issues lately and they are looking to you to help them resolve their financial issues.  You would be acting ethically if you: