consolidating balance sheets

consolidating balance sheets -...

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http://www.askmehelpdesk.com/finance-accounting/consolidating-balance-sheets- 234359.html consolidating balance sheets -------------------------------------------------------------------------------- 1. A controlling interest in a company implies that the parent company a. owns all of the subsidiary's stock. b. has influence over a majority of the subsidiary's assets. c. has paid cash for a majority of the subsidiary's stock. d. has transferred common stock for a majority of the subsidiary's outstanding bonds and debentures. 2. Goodwill represents the excess cost of an acquisition over the a. sum of the fair values assigned to intangible assets less liabilities assumed. b. sum of the fair values assigned to tangible and intangible assets acquired less liabilities assumed. c. sum of the fair values assigned to intangibles acquired less liabilities assumed. d. book value of an acquired company. 3. The SEC and FASB has recommended that a parent corporation should consolidate the financial statements of the subsidiary into its financial statements when it exercises control over the subsidiary, even without majority ownership. In which of the following situations would control NOT be evident? a. Access to subsidiary assets is available to all shareholders. b. Dividend policy is set by the parent. c. The subsidiary does not determine compensation for its main employees. d. Substantially all cash flows of the subsidiary flow to the controlling shareholders. 4. The investment in a subsidiary recorded as a purchase by the parent should be recorded on the parent's books at a. underlying book value of the subsidiary's net assets. b. the fair value of the subsidiary's net identifiable assets.
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consolidating balance sheets -...

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