Advanced Accounting Chapter 5 exam Graded A+

Advanced Accounting Chapter 5 exam Graded A+ 1. Which of the following should appear in consolidated financial statements? A. All intercompany transactions properly recorded on each affiliate's books. B. Transactions between the consolidated company and outside parties. C. Transactions not accounted for by the simple equity method. D. Lease transactions between a parent and subsidiary. - answerB 2. Which of the following intercompany transactions would not require a worksheet elimination in the consolidation process? A. The subsidiary's payment of rent to its parent. B. The sale of merchandise by a parent to its subsidiary. C. The amount of a loan to the subsidiary made by its parent. D. None of the above. - answerD 3. Schiff Company owns 100% of the outstanding common stock of the Viel Company. During 20X1, Schiff sold merchandise to Viel that Viel, in turn, sold to unrelated firms. There were no such goods in Viel's ending inventory. However, some of the intercompany purchases from Schiff had not yet been paid. Which of the following amounts will be incorrect in the consolidated statements if no adjustments are made? A. inventory, accounts payable, net income B. inventory, sales, cost of goods sold, accounts receivable C. sales, cost of goods sold, accounts receivable, accounts payable. D. accounts receivable, accounts payable - answerC