Exam (elaborations)
Test bank For Advanced Accounting Chapter 3 + 4 Final 15th Edition by Joe Ben Hoyle
- Course
- Institution
Test bank For Advanced Accounting Chapter 3 + 4 Final 15th Edition by Joe Ben Hoyle
[Show more]
Seller
Follow
Content preview
Test bank For Advanced AccountingChapter 3 + 4 Final 15th Edition by Joe
Ben Hoyle
Under the acquisition method, indirect costs relating to acquisitions should be:
included in the investment cost.
deducted from other contributed capital.
expensed as incurred.
none of these. - ANSexpensed as incurred
Eliminating entries are made to cancel the effects of intercompany transactions and are made
on the:
workpaper only.
books of the parent company.
books of both the parent company and the subsidiary.
books of the subsidiary company. - ANSworkpaper only.
In a business combination accounted for as an acquisition, registration costs related to common
stock issued by the parent company are:
deducted from the investment cost.
expensed as incurred.
deducted from other contributed capital.
included in the investment cost. - ANSdeducted from other contributed capital.
On the consolidated balance sheet, consolidated stockholders' equity is:
less than the parent's stockholders' equity.
, equal to the sum of the parent and subsidiary stockholders' equity.
equal to the parent's stockholders' equity.
greater than the parent's stockholders' equity. - ANSequal to the parent's stockholders' equity
Majority-owned subsidiaries should be excluded from the consolidated statements when:
any of these circumstances exist.
control does not rest with the majority owner.
the subsidiary operates under governmentally imposed uncertainty.
a foreign subsidiary is domiciled in a country with foreign exchange restrictions or controls -
ANSany of these circumstances exist.
Under the economic entity concept, consolidated financial statements are intended primarily for
the benefit of the:
minority stockholders.
creditors of the parent company.
all of these.
stockholders of the parent company. - ANSall of these.
Reasons a parent company may pay more than book value for the subsidiary company's stock
include all of the following EXCEPT:
stockholders' equity may be undervalued.
liabilities may be overvalued.
the existence of unrecorded goodwill.
the fair value of one of the subsidiary's assets may exceed its recorded value because of
appreciation. - ANSstockholders' equity may be undervalued.
What is the method of presentation required by SFAS 160 of "non-controlling interest" on a
consolidated balance sheet?
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 AllLegitExams. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81633 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now