ACCT 5100 C243 Advanced Financial Accounting

C243 Advanced Financial Accounting Final Exam Study Test Bank (multiple choices and answers) Intercompany income statement accounts are eliminated in consolidation because they are deemed to be: A. artificial transactions B. potentially manipulative transactions C. internal transactions D. at amounts that are not determined on arm-length basis E. none of the above - Correct AnswerC. A parent records amortization of excess value under which method? a. Push down basis of accounting b...

C243 Advanced Financial Accounting Final Exam 100% Correct Solved Proprietary funds are A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations C. Funds used to account for monies held by the government in a trustee capacity D. Funds used to account for all financial resou...

C243 Advanced Financial Accounting Business Finance Chapter 19 Quiz Study Guide Purchasing power parity - Correct AnswerTheory that purchasing power in one country will have some power when converted to another currency and spent in another country Arbitrage - Correct AnswerOpportunity to make a profit with very little risk Imperfect Makrets - Correct AnswerPrices can vary when converted into a common currency Political Risk - Correct AnswerRisk that actions by a foreign government w...

Pre-Assessment OA C243 advanced financial accounting multiple choice answers included A company has common stock of $300,000, additional paid-in capital of $90,000, and retained earnings of $160,000. The company also has long-term debt of $200,000 and short-term debt and accounts payable of $50,000. Additionally, the company has a noncontrolling stake in a smaller company that is worth $80,000. What are the firm's stockholders' equity and total liabilities? a) Equity of $630,000 and tota...

Everything you should know about c243 advanced financial accounting Goodwill - correct answerAcquisition Cost - Fair Value of the Identifiable Net Assets Emination Entry - correct answerRemove equity accounts & investment accounts Can't have an investment in itself Equity does not go into the consolidated BS Cost Method - correct answerIncome = % of Dividend Income Investment = Initial Cost (Does not Change) Equity Method - correct answerUsed in Parent's Books to account for the...

Pre Assessment C243 Adv Financial Accounting Company A exchanges 10,000 shares of $1 par common stock (fair market value of $20 per share) for all of the stock of Company B. Which entry is posted to the books of Company A in accounting for the business combination on the acquisition date? 1) Debit to Investment in B for $10,000 and Credit to Common Stock for $10,000 2) Debit to Investment in B for $190,000 and Credit to Additional Paid in Capital for $190,000 3) Debit to Investment in B for ...

C243 Advanced Financial Accounting - Chapter 3, 4, 5 Implied Fair Value of Subsidiary formula - Correct AnswerAcquisition Cost / % of Common Stock acquired (represents how much the parent corporation would have to pay if they purchase the entire subsidiary - that is all of the subsidiary's outstanding common stock) Book Value of Subsidiary = Book Value of Subsidiary's Net Assets = VB of Subsidiary's Stockholders' Equity (think A=L+SE or A-L=SE) - Correct Answer Calculation of...

C243: Advanced Financial Accounting, Chapter 11 complete study guide cash flow hedges - Correct Answer(forecasted transactions) to hedge exposure to potential changes in anticipated cash flows for liability such as future interest payments on variable - interest debt or a forecasted cash purchase/sale current rate - Correct Answerthe spot rate on the balance sheet date derivative - Correct Answerfinancial instrument whose value changes in relation to changes in a variable, such as an in...

Advanced Financial Accounting - C243 Ch1 - 4 cohort Assuming no impairment in value before transfer, assets transferred by Parent company to another entity it has created should be recorded by the newly created entity: a. Cost to the Parent Company b. Book Value of the parent's company books at the date of transfer c. Fair value at the date of transfer d. Fair value of consideration exchanged by the newly created entity - Correct AnswerCorrect: b. Book Value of the parent's company bo...

Advanced Financial Accounting - C243 complete study guide Special Purpose Entity (SPE) - Correct AnswerA financing vehicle that is not a substantive operating entity, usually created for one single purpose - can be a corporation, trust or partnership Spin-Off - Correct AnswerOccurs when the ownership of a newly created or existing subsidiary is distributed to the parent's stockholders surrendering any of their stock in the parent company. Therefore, the company divests itself of the sub...