,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition
w w w w w w w w
Hoyle
File: wChapter w02 w- wConsolidation wof wFinancial
wInformation wMultiple wChoice:
[QUESTION]
1. At wthe wdate wof wan wacquisition wwhich wis wnot wa wbargain wpurchase, wthe wacquisition wmethod
A) Consolidates wthe wsubsidiary’s wassets wat wfair wvalue wand wthe wliabilities wat wbook wvalue.
B) Consolidates wall wsubsidiary wassets wand wliabilities wat wbook wvalue.
C) Consolidates wall wsubsidiary wassets wand wliabilities wat wfair wvalue.
D) Consolidates wcurrent wassets wand wliabilities wat wbook wvalue, wand wlong-term wassets wand
wliabilities wat wfair wvalue.
E) Consolidates wthe wsubsidiary’s wassets wat wbook wvalue wand wthe wliabilities wat
wfair wvalue. wAnswer: wC
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
wTopic: wAcquisition―Allocate wfair wvalue
wDifficulty: w1 wEasy
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
2. In wan wacquisition wwhere w100% wcontrol wis wacquired, whow wwould wthe wland waccounts wof
wthe wparent wand wthe wland waccounts wof wthe wsubsidiary wbe wreported won wconsolidated
wfinancial wstatements?
Parent Subsidiary
A) Book wValue Book wValue
B) Book wValue Fair wValue
C) Fair wValue Fair wValue
D) Fair wValue Book wValue
E) Cost Cost
Answer: wB
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
wTopic: wAcquisition―Allocate wfair wvalue
wDifficulty: w2 wMedium
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
3. Lisa wCo. wpaid wcash wfor wall wof wthe wvoting wcommon wstock wof wVictoria wCorp. w Victoria
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-1
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,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition
w w w w w w w w
Hoyle
wwill wcontinue wto wexist was wa wseparate wcorporation. wEntries wfor wthe wconsolidation wof wLisa
wand wVictoria wwould wbe wrecorded win
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-2
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, DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition
w w w w w w w w
Hoyle
A) A wworksheet.
B) Lisa's wgeneral wjournal.
C) Victoria's wgeneral wjournal.
D) Victoria's wsecret wconsolidation wjournal.
E) The wgeneral wjournals wof wboth
wcompanies. wAnswer: wA
Learning wObjective: w02-07
wTopic: wConsolidation
wworksheet wDifficulty: w1 wEasy
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
4. Using wthe wacquisition wmethod wfor wa wbusiness wcombination, wgoodwill wis wgenerally
wcalculated was wthe:
A) Cost wof wthe winvestment wless wthe wsubsidiary's wbook wvalue wat wthe wbeginning wof wthe wyear.
B) Cost wof wthe winvestment wless wthe wsubsidiary's wbook wvalue wat wthe wacquisition wdate.
C) Cost wof wthe winvestment wless wthe wsubsidiary's wfair wvalue wat wthe wbeginning wof wthe wyear.
D) Cost wof wthe winvestment wless wthe wsubsidiary's wfair wvalue wat wacquisition wdate.
E) Zero, wit wis wno wlonger wallowed wunder wfederal
wlaw. wAnswer: wD
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
Topic: wAcquisition―Calculate wgoodwill wor wbargain
Difficulty: w2 wMedium
wBlooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
5. Direct wcombination wcosts wand wamounts wincurred wto wregister wand wissue wstock win
wconnection wwith wa wbusiness wcombination. w How wshould wthose wcosts wbe waccounted wfor win
wa wpre-2009 wbusiness wcombination?
Direct wCombination wCosts Stock wIssuance w Costs
A) Increase w Investment Decrease w Investment
B) Increase w Investment Decrease wAdditional wPaid-in
wCapital
C) Increase w Investment Increase w Expenses
D) Decrease wAdditional wPaid-in Increase w Investment
wCapital
E) Increase w Expenses Decrease w Investment
Answer: wB
Learning wObjective: w02-09
Topic: wLegacy wmethods―Purchase wand wpooling
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-3
mynursytest.store
w w w w w w w w
Hoyle
File: wChapter w02 w- wConsolidation wof wFinancial
wInformation wMultiple wChoice:
[QUESTION]
1. At wthe wdate wof wan wacquisition wwhich wis wnot wa wbargain wpurchase, wthe wacquisition wmethod
A) Consolidates wthe wsubsidiary’s wassets wat wfair wvalue wand wthe wliabilities wat wbook wvalue.
B) Consolidates wall wsubsidiary wassets wand wliabilities wat wbook wvalue.
C) Consolidates wall wsubsidiary wassets wand wliabilities wat wfair wvalue.
D) Consolidates wcurrent wassets wand wliabilities wat wbook wvalue, wand wlong-term wassets wand
wliabilities wat wfair wvalue.
E) Consolidates wthe wsubsidiary’s wassets wat wbook wvalue wand wthe wliabilities wat
wfair wvalue. wAnswer: wC
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
wTopic: wAcquisition―Allocate wfair wvalue
wDifficulty: w1 wEasy
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
2. In wan wacquisition wwhere w100% wcontrol wis wacquired, whow wwould wthe wland waccounts wof
wthe wparent wand wthe wland waccounts wof wthe wsubsidiary wbe wreported won wconsolidated
wfinancial wstatements?
Parent Subsidiary
A) Book wValue Book wValue
B) Book wValue Fair wValue
C) Fair wValue Fair wValue
D) Fair wValue Book wValue
E) Cost Cost
Answer: wB
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
wTopic: wAcquisition―Allocate wfair wvalue
wDifficulty: w2 wMedium
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
3. Lisa wCo. wpaid wcash wfor wall wof wthe wvoting wcommon wstock wof wVictoria wCorp. w Victoria
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-1
mynursytest.store
,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition
w w w w w w w w
Hoyle
wwill wcontinue wto wexist was wa wseparate wcorporation. wEntries wfor wthe wconsolidation wof wLisa
wand wVictoria wwould wbe wrecorded win
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-2
mynursytest.store
, DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition
w w w w w w w w
Hoyle
A) A wworksheet.
B) Lisa's wgeneral wjournal.
C) Victoria's wgeneral wjournal.
D) Victoria's wsecret wconsolidation wjournal.
E) The wgeneral wjournals wof wboth
wcompanies. wAnswer: wA
Learning wObjective: w02-07
wTopic: wConsolidation
wworksheet wDifficulty: w1 wEasy
Blooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
4. Using wthe wacquisition wmethod wfor wa wbusiness wcombination, wgoodwill wis wgenerally
wcalculated was wthe:
A) Cost wof wthe winvestment wless wthe wsubsidiary's wbook wvalue wat wthe wbeginning wof wthe wyear.
B) Cost wof wthe winvestment wless wthe wsubsidiary's wbook wvalue wat wthe wacquisition wdate.
C) Cost wof wthe winvestment wless wthe wsubsidiary's wfair wvalue wat wthe wbeginning wof wthe wyear.
D) Cost wof wthe winvestment wless wthe wsubsidiary's wfair wvalue wat wacquisition wdate.
E) Zero, wit wis wno wlonger wallowed wunder wfederal
wlaw. wAnswer: wD
Learning wObjective: w02-04
Learning wObjective: w02-05
Topic: wAcquisition―Valuation wprinciples
Topic: wAcquisition―Calculate wgoodwill wor wbargain
Difficulty: w2 wMedium
wBlooms: wRemember
AACSB: wReflective
wThinking wAICPA: wBB
wCritical wThinking wAICPA:
wFN wMeasurement
[QUESTION]
5. Direct wcombination wcosts wand wamounts wincurred wto wregister wand wissue wstock win
wconnection wwith wa wbusiness wcombination. w How wshould wthose wcosts wbe waccounted wfor win
wa wpre-2009 wbusiness wcombination?
Direct wCombination wCosts Stock wIssuance w Costs
A) Increase w Investment Decrease w Investment
B) Increase w Investment Decrease wAdditional wPaid-in
wCapital
C) Increase w Investment Increase w Expenses
D) Decrease wAdditional wPaid-in Increase w Investment
wCapital
E) Increase w Expenses Decrease w Investment
Answer: wB
Learning wObjective: w02-09
Topic: wLegacy wmethods―Purchase wand wpooling
Copyright w© w2017 wMcGraw-Hill wEducation. wAll wrights wreserved. wNo wreproduction wor wdistribution wwithout wthe wprior
wwritten wconsent wof w McGraw-Hill wEducation.
Page w2-3
mynursytest.store
