mid_advanced_acc._first09-10

mid_advanced_acc._first09-10 - MODEL A Islamic university...

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MODEL A advanced accounting Mid exam 2009/2010 Islamic university – Gaza Thursday 19/11/2009 College of commerce One hour Accounting department Name: …………………………………………………… Id.:………………………… Question 1: choose the best answer. (14 marks) 1. From the standpoint of accounting theory, which of the following statements is the best justification for the preparation of consolidated financial statements? a. In substance the companies are separate, but in form the companies are one entity. b. In substance the companies are one entity, but in form they are separate. c. In substance and form the companies are one entity. d. In substance and form the companies are separate entities. 2. Which of the following is a reason why a company would expand through a combination, rather than by building new facilities? a. A combination might provide cost advantages. b. A combination might provide fewer operating delays. c. A combination might provide easier access to intangible assets. d. All of the above are possible reasons that a company might choose a combination. 3. Durer Inc acquired Sea Corporation in a business combination and Sea Corp went out of existence. Sea Corp developed a patent listed as an asset on Sea Corp’s books at the patent office filing cost. In recording the combination a. fair value is not assigned to the patent because the research and development costs have been expensed by Sea Corp. b.
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This note was uploaded on 03/08/2012 for the course ACC 4304 taught by Professor Ralultapia during the Spring '10 term at Texas State.

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mid_advanced_acc._first09-10 - MODEL A Islamic university...

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