100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank for Advanced Financial Accounting 13th Edition By Theodore Christensen 2024 / All Chapters ( 1-20 ) A+ $12.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Advanced Financial Accounting 13th Edition
  4.  
  5. Advanced Financial Accounting 13th Edition

Exam (elaborations)

Test Bank for Advanced Financial Accounting 13th Edition By Theodore Christensen 2024 / All Chapters ( 1-20 ) A+
 0 purchase
  • Course
  • Advanced Financial Accounting 13th Edition
  • Institution
  • Advanced Financial Accounting 13th Edition
  • Book
  • Advanced Financial Accounting

Test Bank for Advanced Financial Accounting 13th Edition By Theodore Christensen 2024 / All Chapters ( 1-20 ) A+ Chapter 1 Intercorporate Acquisitions and Investments in Other Entities 1) Assuming no impairment in value prior to transfer, assets transferred by a parent company to another entity ...

[Show more]

Preview 4 out of 874  pages

Document information

  • March 20, 2024
  • 874
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • 13th edition
  • by theodore christensen
  • chapters 1 20
  • 2024
  • 9781260772135
  • complete guide
  • test bank
  • advanced financial accounting
  • test bank for advanced financial accounting

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Advanced Financial Accounting 13th Edition TEST BANK By Theodore Christensen| All Chapters
  • TEST BANK for Advanced Financial Accounting 13th Edition By Theodore Christensen| All Chapters
  • TEST BANK Advanced Financial Accounting (13th Ed) By Theodore Christensen| All Chapters Covered NEWEST
All for this textbook (96)

Written for

  • Advanced Financial Accounting 13th Edition
All documents for this subject (93)

Seller

avatar-seller
TestsBanks

Reviews received

Content preview

Solutions Test Bank for
Advanced Financial Accounting 13th Edition By Theodore Christensen


Chapter 1 Intercorporate Acquisitions and Investments in Other Entities

1) Assuming no impairment in value prior to transfer, assets transferred by a parent company to
another entity it has created should be recorded by the newly created entity at the assets':
A) cost to the parent company.
B) book value on the parent company's books at the date of transfer.
C) fair value at the date of transfer.
D) fair value of consideration exchanged by the newly created entity.

Answer: B
Difficulty: 1 Easy
Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities
Learning Objective: 01-01 Understand and explain the reasons for and different methods of
business expansion, the types of organizational structures, and the types of acquisitions.; 01-03
Make calculations and prepare journal entries for the creation of a business entity.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Decision Making

2) Given the increased development of complex business structures, which of the following
regulators is responsible for the continued usefulness of accounting reports?
A) Securities and Exchange Commission (SEC)
B) Public Company Accounting Oversight Board (PCAOB)
C) Financial Accounting Standards Board (FASB)
D) All of the other answers are correct

Answer: D
Difficulty: 1 Easy
Topic: An Introduction to Complex Business Structures
Learning Objective: 01-01 Understand and explain the reasons for and different methods of
business expansion, the types of organizational structures, and the types of acquisitions.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Reporting

3) A business combination in which the acquired company's assets and liabilities are combined
with those of the acquiring company into a single entity is defined as:
A) Stock acquisition
B) Leveraged buyout
C) Statutory Merger
D) Reverse statutory rollup

,Answer: C
Difficulty: 1 Easy
Topic: Organizational Structure and Financial Reporting
Learning Objective: 01-04 Understand and explain the differences between different forms of
business combinations.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Decision Making

4) In which of the following situations do accounting standards not require that the financial
statements of the parent and subsidiary be consolidated?
A) A corporation creates a new 100 percent owned subsidiary
B) A corporation purchases 90 percent of the voting stock of another company
C) A corporation has both control and majority ownership of an unincorporated company
D) A corporation owns less-than a controlling interest in an unincorporated company

Answer: D
Difficulty: 1 Easy
Topic: Organizational Structure and Financial Reporting
Learning Objective: 01-01 Understand and explain the reasons for and different methods of
business expansion, the types of organizational structures, and the types of acquisitions.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: FN Decision Making

During its inception, Devon Company purchased land for $100,000 and a building for $180,000.
After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary,
Regan Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses
straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An
appraisal revealed that the building has a fair value of $200,000.

5) Based on the information provided, at the time of the transfer, Regan Company should record:
A) Building at $180,000 and no accumulated depreciation.
B) Building at $162,000 and no accumulated depreciation.
C) Building at $200,000 and accumulated depreciation of $24,000.
D) Building at $180,000 and accumulated depreciation of $18,000.

Answer: D
Difficulty: 2 Medium
Topic: Valuation of Business Entities; Accounting for Internal Expansion: Creating Business
Entities
Learning Objective: 01-04 Understand and explain the differences between different forms of
business combinations.; 01-03 Make calculations and prepare journal entries for the creation of a
business entity.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

,6) Based on the information provided, what amount would be reported by Devon Company as
investment in Regan Company common stock?
A) $312,000
B) $180,000
C) $330,000
D) $150,000

Answer: A
Difficulty: 2 Medium
Topic: Accounting for Internal Expansion: Creating Business Entities; The Development of
Accounting for Business Combinations
Learning Objective: 01-03 Make calculations and prepare journal entries for the creation of a
business entity.; 01-02 Understand the development of standards related to acquisition accounting
over time.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

7) Based on the preceding information, Regan Company will report
A) additional paid-in capital of $0.
B) additional paid-in capital of $150,000.
C) additional paid-in capital of $162,000.
D) additional paid-in capital of $180,000.

Answer: C
Difficulty: 2 Medium
Topic: Accounting for Internal Expansion: Creating Business Entities
Learning Objective: 01-03 Make calculations and prepare journal entries for the creation of a
business entity.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

At its inception, Peacock Company purchased land for $50,000 and a building for $220,000. After
exactly 4 years, it transferred these assets and cash of $75,000 to a newly created subsidiary,
Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses
straight-line depreciation. When purchased, the building had a useful life of 20 years with no
expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair
value of $250,000.

8) Based on the information provided, at the time of the transfer, Selvick Company should record
A) the building at $220,000 and accumulated depreciation of $44,000.
B) the building at $220,000 with no accumulated depreciation.
C) the building at $176,000 with no accumulated depreciation.
D) the building at $250,000 with no accumulated depreciation.

, Answer: A
Difficulty: 2 Medium
Topic: Valuation of Business Entities; Accounting for Internal Expansion: Creating Business
Entities
Learning Objective: 01-04 Understand and explain the differences between different forms of
business combinations.; 01-03 Make calculations and prepare journal entries for the creation of a
business entity.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

9) Based on the information provided, what amount would be reported by Peacock Company as
investment in Selvick Company common stock?
A) $125,000
B) $250,000
C) $301,000
D) $345,000

Answer: C
Difficulty: 2 Medium
Topic: Accounting for Internal Expansion: Creating Business Entities; The Development of
Accounting for Business Combinations
Learning Objective: 01-03 Make calculations and prepare journal entries for the creation of a
business entity.; 01-02 Understand the development of standards related to acquisition accounting
over time.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

10) Based on the preceding information, Selvick Company will report additional paid-in capital of
A) $125,000.
B) $176,000.
C) $220,000.
D) $250,000.

Answer: B
Difficulty: 2 Medium
Topic: Accounting for Internal Expansion: Creating Business Entities
Learning Objective: 01-03 Make calculations and prepare journal entries for the creation of a
business entity.
Bloom's: Understand
AACSB: Analytical Thinking
AICPA: FN Measurement

11) Which of the following situations best describes a business combination to be accounted for as
a statutory merger?
A) Both companies in a combination continue to operate as separate, but related, legal entities.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TestsBanks. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

63950 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

NR 228 FINAL EXAM REAL EXAM 150 QUESTIONS AND CORRECT ANSWERS AGRADE CHAMBERLAIN COLLEGE OF NURSING 2024.

Exam (elaborations) ·

(0)

Champions Principles of Real Estate 2 | 91 Actual Questions and Answers 100% correct | Latest Update 2023-2024

Exam (elaborations) ·

(0)

2024 NSG 6020 3p exam / NSG6020 3P Exam Answers - Attempt Score: 94.67% Latest COMPLETE SOLUTIONS UPDATED

Exam (elaborations) ·

(0)

NUR 283Pediatric Medications - Questions with Correct Answers/ Already Grade A+/ Latest Version 2024/2025

Exam (elaborations) ·

(0)

2024 California DMV Permit Test Study Guide | 180 Questions with 100% Correct Answers | Verified | Latest Update

Exam (elaborations) ·

(0)

nc 302 post licensing contracts&closing nc post licensing 302 jj (actual exam)questions,answers 2024 – 2025

Exam (elaborations) ·

(0)

Chemistry Straighterline Exam With 100% Correct Answers Latest Update 2024/2025 Questions and Answers

Package deal ·

(0)

Bundle:::American Board of Surgical Assistants exams 2024/2025 with Verified solutions | Already Graded

Exam (elaborations) ·

(0)

TEST BANK FOR WILLIAMS’ BASIC NUTRITION AND DIET THERAPY, 16TH EDITION (2021, NIX)| CHAPTER 1-23 COMPLETE

$12.99
  • (0)
Add to cart
Added