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. 3
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
Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2013. Pigskin
received payment of 35,000 British pounds on May 8, 2013. The exchange rate was 1 = $1.54 on April
8 and 1 = 1.43 on May 8. What am
On January 1, 2013, 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
Which one of the following accounts would not appear in the consolidated financial statements at the end
of the first fiscal period of the combination?
C. Investment in Subsidiary.
D. Common Stock.
On November 8, 2013, 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?
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
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
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 requir
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 Obligatio
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 partnersh