[Document title]
TEST BANK FOR ADVANCED ACCOUNTING,
15TH EDITION BY JOE BEN HOYLE, SCHAEFER
AND DOUPNIK LATEST
,2
TABLE OF CONTENTS
chapter 1: the equity method of accounting for investments
chapter 2: consolidation of financial information
chapter 3: consolidations—subsequent to the date of acquisition
chapter 4: consolidated financial statements and outside ownership
chapter 5: consolidated financial statements—intra-entity asset transactions
chapter 6: variable interest entities, intra-entity debt, consolidated cash flows,
and other issues
chapter 7: consolidated financial statements—ownership patterns and income
taxes
chapter 8: segment and interim reporting
chapter 9: foreign currency transactions and hedging foreign exchange risk
chapter 10: translation of foreign currency financial statements
chapter 11: worldwide accounting diversity and international standards
chapter 12: financial reporting and the securities and exchange commission
chapter 13: accounting for legal reorganizations and liquidations
chapter 14: partnerships: formation and operation
chapter 15: partnerships: termination and liquidation
chapter 16: accounting for state and local governments (part 1)
chapter 17: accounting for state and local governments (part 2)
chapter 18: accounting and reporting for private not-for-profit entities
chapter 19: accounting for estates and trusts
,[Document title]
chapter 02
consolidation of financial information
multiple choice questions
1. at the date of an acquisition which is not a bargain purchase, the
acquisition method
A. consolidates the subsidiary's assets at fair value and the liabilities at book
value.
B. consolidates all subsidiary assets and liabilities at
book value.
C. consolidates all subsidiary assets and liabilities at fair
value.
D. consolidates current assets and liabilities at book value, long-term
assets and liabilities at fair value.
E. consolidates the subsidiary's assets at book value and the liabilities at fair
value.
2. in an acquisition where control is achieved, how would the land accounts
of the parent and the land accounts of the subsidiary be combined?
A. option
a
B. option
b
C. option
c
D. option
, 4
d
E. option
e
3. lisa co. paid cash for all of the voting common stock of victoria corp. victoria
will continue to exist as a separate corporation. entries for the consolidation of
lisa and victoria would be recorded in
A. a
worksheet.
B. lisa's general
journal.
C. victoria's general
journal.
D. victoria's secret consolidation
journal.
E. the general journals of both
companies.
4. using the acquisition method for a business combination, goodwill is
generally defined as:
A. cost of the investment less the subsidiary's book value at the
beginning of the year.
B. cost of the investment less the subsidiary's book value at the
acquisition date.
C. cost of the investment less the subsidiary's fair value at the
beginning of the year.
D. cost of the investment less the subsidiary's fair value at
acquisition date.
E. is no longer allowed under
federal law.
5. direct combination costs and stock issuance costs are often incurred in the
process of making a controlling investment in another company. how should
those costs be accounted for in a pre-2009 purchase transaction?
TEST BANK FOR ADVANCED ACCOUNTING,
15TH EDITION BY JOE BEN HOYLE, SCHAEFER
AND DOUPNIK LATEST
,2
TABLE OF CONTENTS
chapter 1: the equity method of accounting for investments
chapter 2: consolidation of financial information
chapter 3: consolidations—subsequent to the date of acquisition
chapter 4: consolidated financial statements and outside ownership
chapter 5: consolidated financial statements—intra-entity asset transactions
chapter 6: variable interest entities, intra-entity debt, consolidated cash flows,
and other issues
chapter 7: consolidated financial statements—ownership patterns and income
taxes
chapter 8: segment and interim reporting
chapter 9: foreign currency transactions and hedging foreign exchange risk
chapter 10: translation of foreign currency financial statements
chapter 11: worldwide accounting diversity and international standards
chapter 12: financial reporting and the securities and exchange commission
chapter 13: accounting for legal reorganizations and liquidations
chapter 14: partnerships: formation and operation
chapter 15: partnerships: termination and liquidation
chapter 16: accounting for state and local governments (part 1)
chapter 17: accounting for state and local governments (part 2)
chapter 18: accounting and reporting for private not-for-profit entities
chapter 19: accounting for estates and trusts
,[Document title]
chapter 02
consolidation of financial information
multiple choice questions
1. at the date of an acquisition which is not a bargain purchase, the
acquisition method
A. consolidates the subsidiary's assets at fair value and the liabilities at book
value.
B. consolidates all subsidiary assets and liabilities at
book value.
C. consolidates all subsidiary assets and liabilities at fair
value.
D. consolidates current assets and liabilities at book value, long-term
assets and liabilities at fair value.
E. consolidates the subsidiary's assets at book value and the liabilities at fair
value.
2. in an acquisition where control is achieved, how would the land accounts
of the parent and the land accounts of the subsidiary be combined?
A. option
a
B. option
b
C. option
c
D. option
, 4
d
E. option
e
3. lisa co. paid cash for all of the voting common stock of victoria corp. victoria
will continue to exist as a separate corporation. entries for the consolidation of
lisa and victoria would be recorded in
A. a
worksheet.
B. lisa's general
journal.
C. victoria's general
journal.
D. victoria's secret consolidation
journal.
E. the general journals of both
companies.
4. using the acquisition method for a business combination, goodwill is
generally defined as:
A. cost of the investment less the subsidiary's book value at the
beginning of the year.
B. cost of the investment less the subsidiary's book value at the
acquisition date.
C. cost of the investment less the subsidiary's fair value at the
beginning of the year.
D. cost of the investment less the subsidiary's fair value at
acquisition date.
E. is no longer allowed under
federal law.
5. direct combination costs and stock issuance costs are often incurred in the
process of making a controlling investment in another company. how should
those costs be accounted for in a pre-2009 purchase transaction?
