Advanced Accounting final exam with verified solutions

Advanced Accounting final exam with verified solutions In the preparation of a consolidated statement of cash flows using the indirect method of presenting cash flows from operating activities, the amount of the noncontrolling interest in consolidated income is: Select one: a. combined with the controlling interest in consolidated net income. b. deducted from the controlling interest in consolidated net income. c. reported as a significant noncash investing and financing activity in the notes. d. reported as a component of cash flows from financing activities. - answera. combined with the controlling interest in consolidated net income. Eliminating entries are made to cancel the effects of intercompany transactions and are made on the: Select one: a. books of the parent company. b. books of the subsidiary company. c. workpaper only. d. books of both the parent company and the subsidiary. - answerc. workpaper only. When following the parent company concept in the preparation of consolidated financial statements, noncontrolling interest in combined income is considered a(n): Select one: a. prorated share of the combined income. b. addition to combined income to arrive at consolidated net income. c. expense deducted from combined income to arrive at consolidated net income. d. deduction from current assets in the balance sheet. - answerc. expense deducted from combined income to arrive at consolidated net income. In the preparation of a consolidated statements workpaper, dividend income recognized by a parent company for dividends distributed by its subsidiary is: Select one: a. included with parent company income from other sources to constitute consolidated net income. b. assigned as a component of the noncontrolling interest. c. allocated proportionately to consolidated net income and the noncontrolling interest. d. eliminated. - answerd. eliminated. Nicole Company acquired 75 percent of the common stock of Viscardo Corporation on December 31, 2016. On the date of acquisition, Nicole held land with a book value of $150,000 and a fair value of $300,000; Viscardo held land with a book value of $100,000 and fair value of $500,000. What amount would land be reported in the consolidated balance sheet prepared immediately after the combination? Select one: a. $650,000 b. $500,000 c. $550,000 d. $375,000 - answera. $650,000 In the preparation of consolidated financial statements, the basis for valuing the noncontrolling interest in net assets is the: Select one: a. book values of subsidiary assets and liabilities. b. fair values of subsidiary assets and liabilities. c. general price level adjusted values of subsidiary assets and liabilities. d. fair values of parent company assets and liabilities. - answerb. fair values of subsidiary assets and liabilit