{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

consolidating balance sheets -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}