ADVANCED ACCOUNTING ACT

ADVANCED ACCOUNTING ACT - T01 ADVANCED ACCOUNTING...

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Unformatted text preview: T01 ADVANCED ACCOUNTING ACT-4491-TDWA 10/SP (MAGRATH) (T01-ACT4491TDWA-10SP) > EXAMS/QUIZZES > REVIEW ASSESSMENT: ACT4491 EXAM 1 SP10 Review Assessment: Yu Chen 1/27/10 10:43 AM ACT4491 Exam 1 SP10 Completed 56 out of 108 points 1 hours, 2 minutes, and 15 seconds out of 1 hours and 10 minutes allo Questio n 1 5 out of 5 points Which of the following results in an increase in the account “Paid-in-capital” on the books of an acquiring company? Selected Answer: Correct Answer: Questio n 2 5 out of 5 points All of the following are types of business combinations or types of entities formed by business combinations except Selected Answer: Correct Answer: Questio n 3 5 out of 5 points Publics Company acquired the net assets of Citizen Company during 20X5. The purchase price was $800,000. On the date of the transaction, Citizen had no long-term investments in marketable equity securities and $400,000 in liabilities. The fair value of Citizen assets on the acquisition date was as follows: Current assets Noncurrent assets How should Publics account for the $200,000 difference between the fair value of the net assets acquired, $1,000,000, and the cost, $800,000? Selected Answer: Correct Answer: Questio n 4 5 out of 5 points Which of the following results in recording a “Gain on acquisition:” Selected Answer: Correct Answer: Questio n 4 5 out of 5 points Questio n 5 5 out of 5 points Goodwill represents the excess cost of an acquisition over the Selected Answer: Correct Answer: Question 6 5 out of 5 points Panther is acquiring the net assets of Sharon Company. The book and fair values of Sharon’s accounts are as follows: Book Fair Current Assets 100,000 120,000 Land 50,000 80,000 Building and Equipment 300,000 400,000 Customer List 0 20,000 Liabilities 100,000 100,000 What amount will be recorded for current assets if the selling price is 450,000? Selected Answer: b. 120,000 Correct Answer: b. 120,000 Questio n 7 1 out of 4 points List and briefly describe the four steps in the acquisition method. Selected Answer: 1. determine the date of acquisition. 2.mearure the net assets in the acqsutuin date. Correct Answer: 1. identify the acquirer 2. determine the acquisition date 3. measure the fair value of the acquiree 4. record the acquiree’s assets and liabilities that are assumed. Feedback: [None Given] Questio n 8 5 out of 5 points If the fair value of net assets is greater than the book value of net assets Selected Answer: Correct Answer: Questio n 9 0 out of 4 points Distinguish between a business combination resulting from the acquisition of net assets and from the acquisition of stock....
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This note was uploaded on 06/15/2011 for the course ACT 4491 taught by Professor Magrath during the Spring '11 term at Troy.

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ADVANCED ACCOUNTING ACT - T01 ADVANCED ACCOUNTING...

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