For business combinations involving less than 100 percent ownership, the acquirer recognizes and
measures all of the following at the acquisition date except:
A. identifiable assets acquired, at fair value.
B. liabilities assumed, at bo
In the United States, foreign companies filing annual reports with the SEC that are not prepared in
accordance with U.S. GAAP must:
A. present financial statements that comply with international GAAP.
B. conform with U.S. GAAP or prese
Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2011. Pigskin
received payment of 35,000 British pounds on May 8, 2011. The exchange rate was 1 = $1.54 on April 8
and 1 = 1.43 on May 8. What am
In accounting, the term translation refers to
A. the calculation of gains or losses from hedging transactions.
B. the calculation of exchange rate gains or losses on individual transactions in foreign currencies.
C. the procedure requi
A Chapter 7 bankruptcy is a(n)
A. involuntary reorganization.
B. bankruptcy forced by a company's creditors.
D. bankruptcy in which all creditors receive payment in full.
E. voluntary reorganization.
Where should a c
Buckette Co. owned 60% of Shuvelle Corp. and 40% of Tayle Corp., and Shuvelle owned 35% of Tayle.
When Buckette prepared consolidated financial statements, it should include
A. Shuvelle but not Tayle.
B. Tayle but not Shuvelle.
Generally accepted accounting principles require a U.S. corporation to disclose the following
disaggregated information for each operating segment, except:
A. Revenues from external customers.
B. Discontinued operations.
C. Cost of good
On January 1, 2011, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The
bonds had a carrying value of $421,620, and Riley paid $401,937 for them. How should you account for
the difference between the carry
On November 8, 2011, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost
$61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on
the sale of the land realized?
Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method
to account for this investment. Trace reported net income of $110,000 for 2011 and paid dividends of
$60,000 on October 1, 2011. How much incom
At the date of an acquisition which is not a bargain purchase, the acquisition method
A. consolidates the subsidiary's assets at fair value and the liabilities at book value.
B. consolidates all subsidiary assets and liabilities at book
Merchandise remaining in Jamess inventory $250,000 40% = $100,000.
Unrealized gross profit (based on subsidiary's gross profit rate as the seller) $100,000
30% = $30,000. Jamess ownership percentage of Carl has no impact on this computation.
Excess acquisition-date fair value amortization.
Consolidated net income.
Less: noncontrolling interest share ($85,000 40%).
Consolidated net income to Chamberlain Corporation.
(P) The calculation of total goodwill when there is non-controlling interest. (CH 4)
Assume Parker Corporation wants to acquire 90% (9,000 shares) of Strong Company. The FV of
Strong Companys Net Assets is $600,000. Parker paid $70 per share to induce
CH 2 Exercises and Notes
Two major parts in this chapter: (1) consolidation when dissolution takes place ; (2) consolidation
when separate incorporation is maintained.
When a person dies without leaving a valid will, how is the distribution of his or her property
A. in accordance with federal inheritance laws.
B. in accordance with generally accepted accounting principles.
C. in accordanc
For government-wide financial statements, what account is credited when a piece of equipment is leased
on a capital lease?
A. Equipment - Capital Lease
B. Encumbrances - Long Term
C. Encumbrances - Lease Obligations
D. Capital Lease Ob
Practice Exam and review guidance
Chapters covered: 9, 10, 14, 15 and two problems from chapters covered in previous two exams.
Time: 5/13/2013 (Monday) Same location and time as our regular classes.
Norton Co., a U.S. corporation, sold inventory on De
Advanced Accounting Syllabus Spring 2016 Session 001
We mainly use DROPBOX system for course materials and announcements. Grades are still uploaded to
BLACKBOAD system. For communication purposes, please send me emails ([email protected]) instead of usi
JERICHO Co. Income Statement
Cost of Goods Sold
Income Before Taxes
Currency Exchange Gain/Loss
If it is 10% of Investee
If it is 30% of Investee
Invest $30,000 in the investee
(Jan 1, Year 1)
Investment in investee 30,000
Investment in investee 30,000
Fair market value (Dec 31, Year
1) increases to $40,000
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The main principle that necessitates a company to go into a merger or a
CH 9 Foreign Currency Transactions
and Hedging Foreign Exchange Risk
Basics about Currencies and Exchange Rates
Each country uses its own currency as the unit of
value for the purchase and sale of goods and serv
Exchange rates have not always fluc
CH 5 Consolidated Financial Stateme
nts-Intra-Entity Asset Transactions
Transfer of Inventory (year of transfer)
1. When all inventory is sold to outside parties
A and B are affiliated
A sold inventory to B during this period:
Basics of Partnership
A partnership is defined as an association of two or more
persons to carry on a business as co-owners for profit.
This form of business organization is popular for many
reasons, primarily ease of formation and organization.
Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct
sets of financial statements for state and local governments?
A. GASB Statement No. 32.
B. GASB Statement No. 33.
C. GASB Statement No.
Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the
partnership. The accountant for the partnership believed that the dissolved partnership and the newly
formed partnership were two separate
Which one of the following is not a division of the SEC?
A. the Division of Corporation Finance.
B. the Division of Investment Management.
C. the Division of Compliance Information.
D. the Division of Enforcement.
E. the Division of Tr
When a partnership is insolvent and a partner has a deficit capital balance, that partner is legally required
A. declare personal bankruptcy.
B. initiate legal proceedings against the partnership.
C. contribute cash to the partners