Test Bank For Advanced Accounting 13Th Edition by Joe Ben Hoyle

,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
n n n n n n n n n




File:nChaptern02n-

ConsolidationnofnFinancialnInformationnMultiplenChoice:
n



[QUESTION]
1. Atnthendatenofnannacquisitionnwhichnisnnotnanbargainnpurchase,nthenacquisitionnmethod
A) Consolidatesnthensubsidiary’snassetsnatnfairnvaluenandnthenliabilitiesnatnbooknvalue.
B) Consolidatesnallnsubsidiarynassetsnandnliabilitiesnatnbooknvalue.
C) Consolidatesnallnsubsidiarynassetsnandnliabilitiesnatnfairnvalue.
D) Consolidatesncurrentnassetsnandnliabilitiesnatnbooknvalue,nandnlong-
termnassetsnandnliabilitiesnatnfairnvalue.
E) Consolidatesnthensubsidiary’snassetsnatnbooknvaluenandnthenliabilitiesnatnfairnvalue.n
Answer:nC
LearningnObjective:n02-04
LearningnObjective:n02-05
Topic:nAcquisition―Valuationnprinciplesn
Topic:nAcquisition―Allocatenfairnvaluen
Difficulty:n1nEasy
Blooms:nRemember
AACSB:nReflectivenThinkingn
AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
2. Innannacquisitionnwheren100%ncontrolnisnacquired,nhownwouldnthenlandnaccountsnofnthenparentn
andnthenlandnaccountsnofnthensubsidiarynbenreportednonnconsolidatednfinancialnstatements?

Parent Subsidiary
A) BooknValue BooknValue
B) BooknValue FairnValue
C) FairnValue FairnValue
D) FairnValue BooknValue
E) Cost Cost

Answer:nB
LearningnObjective:n02-04
LearningnObjective:n02-05
Topic:nAcquisition―Valuationnprinciplesn
Topic:nAcquisition―Allocatenfairnvaluen
Difficulty:n2nMedium
Blooms:nRemember
AACSB:nReflectivenThinkingn
AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
3. LisanCo.npaidncashnfornallnofnthenvotingncommonnstocknofnVictorianCorp.nVictorianwillncontinuent
onexistnasnanseparatencorporation.nEntriesnfornthenconsolidationnofnLisanandnVictorianwouldnbenrecor
dednin

Copyrightn©n2017nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-HillnEducation.
Pagen2-1
mynursytest.store

,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
n n n n n n n n n




A) Anworksheet.
B) Lisa'sngeneralnjournal.
C) Victoria'sngeneralnjournal.
D) Victoria'snsecretnconsolidationnjournal.
E) Thengeneralnjournalsnofnbothncompanies.n
Answer:nA
LearningnObjective:n02-
07nTopic:nConsolidationnworksh
eetnDifficulty:n1nEasy
Blooms:nRemember
AACSB:nReflectivenThinkingn
AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
4. Usingnthenacquisitionnmethodnfornanbusinessncombination,ngoodwillnisngenerallyncalculatednasnt
he:
A) Costnofntheninvestmentnlessnthensubsidiary'snbooknvaluenatnthenbeginningnofnthenyear.
B) Costnofntheninvestmentnlessnthensubsidiary'snbooknvaluenatnthenacquisitionndate.
C) Costnofntheninvestmentnlessnthensubsidiary'snfairnvaluenatnthenbeginningnofnthenyear.
D) Costnofntheninvestmentnlessnthensubsidiary'snfairnvaluenatnacquisitionndate.
E) Zero,nitnisnnonlongernallowednundernfederalnlaw.n
Answer:nD
LearningnObjective:n02-04
LearningnObjective:n02-05
Topic:nAcquisition―Valuationnprinciples
Topic:nAcquisition―Calculatengoodwillnornbargain
Difficulty:n2nMediumn
Blooms:nRemember
AACSB:nReflectivenThinkingn
AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
5. Directncombinationncostsnandnamountsnincurredntonregisternandnissuenstockninnconnectionnwithnan
businessncombination.nHownshouldnthosencostsnbenaccountednforninnanpre-
2009nbusinessncombination?
DirectnCombinationnCosts StocknIssuancen Costs
A) Increasen Investment Decreasen Investment
B) Increasen Investment Decreasen AdditionalnPaid-innCapital
C) Increasen Investment Increasen Expenses
D) Decreasen AdditionalnPaid-innCapital Increasen Investment
E) Increasen Expenses Decreasen Investment
Answer:nB
LearningnObjective:n02-09
Topic:nLegacynmethods―Purchasenandnpooling
Difficulty:n2nMediumn
Blooms:nRemember
AACSB:nReflectivenThinking

Copyrightn©n2017nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-HillnEducation.
Pagen2-2
mynursytest.store

, DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
n n n n n n n n n




AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
6. Hownarendirectnandnindirectncostsnaccountednfornwhennapplyingnthenacquisitionnmethodnfornan
businessncombination?




Answer:nA
LearningnObjective:n02-
06bnTopic:nCostsnofncombin
ationnDifficulty:n1nEasy
Blooms:nRemember
AACSB:nReflectivenThinkingn
AICPA:nBBnCriticalnThinkingn
AICPA:nFNnMeasurement

[QUESTION]
7. Whatnisnthenprimaryndifferencenbetween:n(i)naccountingnfornanbusinessncombinationnwhennthen
subsidiarynisndissolved;nandn(ii)naccountingnfornanbusinessncombinationnwhennthensubsidiarynretai
nsnitsnincorporation?
A) Ifnthensubsidiarynisndissolved,nitnwillnnotnbenoperatednasnanseparatendivision.
B) Ifnthensubsidiarynisndissolved,nassetsnandnliabilitiesnarenconsolidatednatntheirnbooknvalues.
C) Ifnthensubsidiarynretainsnitsnincorporation,ntherenwillnbennongoodwillnassociatednwithnthen
acquisition.
D) Ifnthensubsidiarynretainsnitsnincorporation,nassetsnandnliabilitiesnarenconsolidatednatntheirnbookn
values.
E) Ifnthensubsidiarynretainsnitsnincorporation,nthenconsolidationnisnnotnformallynrecordedninnthen
accountingnrecordsnofnthenacquiringncompany.
Answer:nE
LearningnObjective:n02-
03nLearningnObjective:n02-
06anLearningnObjective:n02-
06c
Topic:nBusinessncombination―DifferentiatenacrossnformsnTop
ic:nJournalnentry―Dissolution
Topic:nJournalnentry―Investmentnwithnnondissolution
Difficulty:n 2nMediumnBlooms
:n UnderstandnAACSB:nRefle
ctivenThinkingnAICPA:nBBnCr
iticalnThinkingnAICPA:nFNnM
easurement

[QUESTION]
8. AccordingntonGAAP,nwhichnofnthenfollowingnisntruenwithnrespectntonthenpoolingnofninterestn
methodnofnaccountingnfornbusinessncombinations?
A) Itnwasnthenonlynmethodnusednpriornton2002.
Copyrightn©n2017nMcGraw-
HillnEducation.nAllnrightsnreserved.nNonreproductionnorndistributionnwithoutnthenpriornwrittennconsentnofnMcGraw-HillnEducation.
Pagen2-3
mynursytest.store