Test Bank For Advanced Financial Accounting 13th Edition By Theodore Christensen, Complete Chapters 1 - 20, Verified Newest Version Test Bank For Advanced Financial Accounting 13th Edition By Theodore Christensen, Complete Chapters 1 - 20, Verified Newest Version Test Bank For Advanced Financial Ac...
TEST BANK
Advanced Financial Accounting13th
Edition
By Theodore Christensen ALL CHAPTERS 1 TO 20
COVERED
,TABLE OF CONTENT
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PREFACE1. Intercorporate Acquisitions and Investments in Other Entities
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2. Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with No Differential
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3. The Reporting Entity and the Consolidation of Less-Than-Wholly-Owned Subsidiaries with NoDifferential
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4. Consolidation of Wholly Owned Subsidiaries Acquired at More Than Book Value
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5. Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More Than Book Value
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6. Intercompany Inventory Transactions
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7. Intercompany Transfers of Services and Noncurrent Assets
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8. Intercompany Indebtedness
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9. Consolidation Ownership Issues
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10. Additional Consolidation Reporting Issues
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11. Multinational Accounting: Foreign Currency Transactions and Financial Instruments
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12. Multinational Accounting: Issues in Financial Reporting and Translation of Foreign Entity Statements
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13. Segment and Interim Reporting
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14. SEC Reporting
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15. Partnerships: Formation, Operation, and Changes in Membership
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16. Partnerships: Liquidation
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17. Governmental Entities: Introduction and General Fund Accounting
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18. Governmental Entities: Special Funds and Governmentwide Financial Statements
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19. Not-for-Profit Entities
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20. Corporations in Financial Difficulty
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Chapter 1 ol Intercorporate Acquisitions and Investments in Other Entities o l o l ol o l o l o l
1) Assuming no impairment in value prior to transfer, assets transferred by a parent company t
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oanother entity it has created should be recorded by the newly created entity at the assets':
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A) cost to the parent company. ol ol ol o l
B) book value on the parent company's books at the date of transfer.
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C) fair value at the date of transfer. o l ol ol ol ol ol
D) fair value of consideration exchanged by t he newly c reated entity.
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Answer: B Diffic ol ol
ulty: 1 E asy ol ol
Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities Learning
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Objective:
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01 Understand and explain the reasons for and different methods of business expansion, the typ
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es of organizational structures, and the types of acquisitions.; 01 -
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03 Make calculations and prepare journal entries for the creation of a business entity.
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Bloom's:
Remember AACSB: ol
Reflective T hinking AICPA:
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FN Decision Making ol ol
2) Given the increased development of complex business structures, which of the followingreg
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ulators is responsible for the continued usefulness of accounting reports?
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A) Securities and Exchange Commission (SEC) ol o l o l o l
B) Public Company Accounting Oversight Board (PCAOB) o l o l ol o l ol
C) Financial Accounting Standards Board (FASB) o l o l o l o l
,D) All of the other answers are correct
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Answer: D Diffic ol ol
ulty: 1 E asy
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Topic: An Introduction to Complex Business Structures
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Learning Objective: 01- ol
01 Understand and explain the reasons for and different methods ofbusiness expansion, the typ
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es of organizational structures, and the types of acquisitions.
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Bloom's:
Remember AACSB: ol
Reflective Thinking AICPA:
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FN Reporting ol
3) A business combination in which the acquired company's assets and liabilities are combinedw ith
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t hose of t he acquiring company into a single entity is defined as:
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A) Stock acquisition ol
B) Leveraged buyout ol
C) Statutory Merger ol
D) Reverse statutory rollup o l ol
, Answer: C Diffic ol ol
ulty: 1 E asy ol ol
Topic: Organizational Structure and Financial Reporting o l o l o l o l
Learning Objective: 01- ol
04 Understand and explain the differences between different forms ofbusiness combinations.
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Bloom's:
Remember AACSB: ol
Reflective T hinking AICPA:
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FN Decision Making ol ol
4) In which of the following situations do accounting standards not require that the financi
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alstatements of the parent and subsidiary be consolidated?
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A) A c orporation creates a new 100 percent owned subsidiary
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B) A corporation purchases 90 percent of the voting stock of another company
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C) A corporation has both control and majority ownership of an unincorporated company
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D) A corporation owns less-than a controlling interest in an unincorporated company
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Answer: D Diffic ol ol
ulty: 1 E asy ol ol
Topic: Organizational Structure and Financial Reporting o l o l o l o l
Learning Objective: 01- ol
01 Understand and explain the reasons for and different methods ofbusiness expansion, the types
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of organizational structures, and the types of acquisitions.
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Bloom's:
Remember AACSB: ol
Reflective T hinking AICPA:
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FN Decision Making ol ol
During its inception, Devon Company purchased land for $100,000 and a building for $180,000. Af
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ter exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary,Regan
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Company, in exchange for 15,000 shares of Regan's $10 par value stock. Devon uses straight-
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line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal re
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vealed that the building has a fair value of $200,000.
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5) Based on the information provided, at the time of the transfer, Regan Company should record:
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A) Building at $180,000 and no accumulated depreciation. ol o l ol o l o l o l
B) Building at $162,000 and no accumulated depreciation. ol o l o l o l o l o l
C) Building at $200,000 and accumulated depreciation of $24,000. o l o l o l o l o l o l ol
D) Building at $180,000 and accumulated depreciation of $18,000. o l o l o l o l o l o l o l
Answer: D Difficulty o lol ol
: 2 Medium
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Topic:
Valuation of Business Entities; Accounting for Internal Expansion: Creating Busines o l ol ol o l o l o l o l o l o l
s Entities
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Learning Objective: 01- ol
04 Understand and explain the differences between different forms of business combinations.; 01
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-03 Make calculations and prepare journal entries for the creation of a business entity.
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Bloom's:
Understand AACSB ol
: Analytical T hinking AICPA:
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