Introduction to Business Combinations and the Conceptual Framework
A business combination in which the boards of directors of the potential combining companies
negotiate mutually agreeable terms is a(n)
a. agreeable combinatio
Consolidated Financial StatementsDate of Acquisition
A majority-owned subsidiary that is in legal reorganization should normally be accounted for using
a. consolidated financial statements.
b. the equity method.
c. the market
Chapter 11 International Accounting and the Global Economy
International Accounting and the Global Economy
Which of the following statements relating to differences in worldwide accounting standards and
practices is not
Changes in Ownership Interest
When the parent company sells a portion of its investment in a subsidiary, the workpaper entry to
adjust for the current years income sold to noncontrolling stockholders includes a
a. debit to Sub
Intercompany Bond Holdings and Miscellaneous Topics
Consolidated Financial Statements
Which of the following methods of allocating the gain or loss on an intercompany bond retirement
is the soundest conceptually?
a. The gain (
Accounting for Business Combinations
The financial accounting standards board requires that all business combinations be accounted for
a. the pooling of interests method.
b. the acquisition method.
c. either the acquisit
Allocation and Depreciation of
Differences Between Implied and Book Value
When the implied value exceeds the aggregate fair values of identifiable net assets, the residual
difference is accounted for as
a. excess of implied ov
Elimination of Unrealized Gains or Losses on
Intercompany Sales of Property and Equipment
In the year a subsidiary sells land to its parent company at a gain, a workpaper entry is made debiting
1. Retained Earnings - P Company
Introduction to Fund Accounting
Governmental units include all of the following except
b. school districts.
c. industrial development districts.
d. voluntary health and welfare organizations.
Which type of fun
Consolidated Financial Statements after Acquisition
An investor adjusts the investment account for the amortization of any difference between cost and
book value under the
a. cost method.
b. complete equity method.
c. partial equity method.
Insolvency Liquidation and Reorganization
A corporation that is unable to pay its debts as they become due is:
When a business becomes insolvent, it generally has th
Reporting for Segments and for Interim Financial Periods
A component of an enterprise that may earn revenues and incur expenses, and about which
management evaluates separate financial information in deciding how to allocate resources and
Accounting for Foreign Currency Transactions
And Hedging Foreign Exchange Risk
A discount or premium on a forward contract is deferred and included in the measurement of the
related foreign currency transaction if the contrac
Introduction to Accounting for State and Local Governmental Units
The highest level of priority of pronouncements that a government entity should look to for
accounting and reporting guidance is
a. GASB Technical Bulletins.
Partnerships: Formation, Operation, and Ownership Changes
When a partner retires and withdraws assets in excess of his book value, the remaining partners
absorb the excess
b. in their profit-sharing ratio.
Translation of Financial Statements of Foreign Affiliates
When translating foreign currency financial statements for a company whose functional currency is
the U.S. dollar, which of the following accounts is translated using
Accounting for Nongovernment Nonbusiness Organizations: Colleges and
Universities, Hospitals, and Other Healthcare Organizations
Special entities are not-for-profit organizations that are
a. government owned.
b. privately own
Elimination of Unrealized Profit on Intercompany Sales of Inventory
Sales from one subsidiary to another are called
a. downstream sales.
b. upstream sales.
c. intersubsidiary sales.
d. horizontal sales.
Which of the following statements is correct?
1. Personal creditors have first claim on partnership assets.
2. Partnership creditors have first claim on partnership assets.
3. Partnership creditors hav
CITY OF BINGHAM
STATEMENT OF REVENUES, EXPENDITURES, CHANGES IN FUND
FOR THE YEAR ENDED APRIL 30, 2011
TAXES REAL PROPERTY
INTEREST AND PENALTIES ON TAXES
LICENSES AND PERMITS
CITY OF BINGHAM
GENERAL FUND BALANCE SHEET
AS OF DEC 31, 2011
LESS: ESTIMATED UNCOLLECTIBLE
INTEREST AND PENALTIES RECEIVABLE
LESS: ESTIMATED UNCOLLECTIBLE
Q17-1. Responsibility accounting is a program
encompassing all operating management for
which the accounting, cost, or budget divisions
provide technical assistance in the form of
daily, weekly, or monthly control reports.
Compared to traditional costing, ABC is a
more thorough application of cost traceability. Traditional costing traces only direct
material and direct tabor to ou
Q22-1. Effective planning and control of capital
expenditures are important because:
(a) financial risk is increased by long-term
(b) the magnitude of capital expenditures is
substantial and the penalties for u
Q19-1. When standard costs are not incorporated,
they may be used for the purposes of pricing,
budgeting, and controlling cost; but if they are
not used for inventory costing, the advantages from the saving of clerical effo