Partnerships: Formation and Operation
A partnership is defined as an association of two or more persons to carry on a business as
co-owners for profit. (Section 6 of Uniform Partnership Act).
The IRS projects that by 2016, nearly 4.7 million pa
Advanced Accounting - ACC4201N
Exam 1 Fall 2015
MC: 5 pts each
1 In a transaction accounted for using the acquisition method where consideration transferred is less than fair value of net assets acquired, which statement is true?
Chapter 15 Summary
Partnerships, Terminations and Liquidations
The liquidation of a partnership generally involves three important steps:
1. Noncash partnership assets are sold for cash, and gains and loss on the sales are
allocated to the capital account
Chapter 3 Summary
Consolidations subsequent to the date of acquisition:
The passage of time creates complexities for internal record keeping and the balance of the
investment account varies due to the accounting method used.
Translation of Foreign Currency Financial Statements
To prepare worldwide consolidated financial statements a U. S. parent must:
This conversion and translation process is required whether the foreign operation is a
branch, joint ve
Chapter 4 Summary
Consolidated Financial Statements and Outside Ownership
Complete ownership of another company is not a pre-requisite for the formation of a
o Typically, ownership of greater than _ is evidence of
Chapter 13 Summary
Accounting for Legal Reorganizations and Liquidations
A basic assumption of accounting is that a business is a going concern (will remain in business).
Occasionally, a business becomes insolvent (unable to pay debts as they come due).
Chapter 9 Summary
Foreign Currency Transactions and Hedging Foreign Exchange Risk
In todays global economy, a great many companies deal in currencies other than their reporting
currencies. Merchandise may be imported or exported with prices stated in a fo
Chapter 2 Summary
1. Nature of business combinations:
a. A business combination occurs when an entity acquires net assets that constitute a
business or acquires equity interests of one or more other entities and obtains control