This document contains a multiple choice test on accounting for business combinations. It includes 20 multiple choice questions testing concepts such as recognition of assets and liabilities acquired, measurement of non-controlling interests, calculation of goodwill, and accounting for acquisitions. It also includes 10 problems testing the application of concepts such as consolidation procedures, calculation of non-controlling interests, and equity method accounting for investments in associates.
The document provides multiple choice answers and solutions to problems related to corporate liquidation. It includes:
1) Multiple choice questions and answers related to estimating amounts recovered by different classes of creditors in a bankruptcy proceeding.
2) Detailed solutions to sample liquidation problems showing calculations to estimate amounts recovered by secured, priority, and unsecured creditors.
3) Statements of affairs, realization and liquidation, and balance sheets to illustrate the accounting entries for a company going through bankruptcy liquidation.
The document provides relevant information and step-by-step workings for understanding corporate bankruptcy proceedings and estimating creditor recoveries.
1) The document contains multiple choice questions and problems related to accounting for branches.
2) It provides income statements, balance sheets, and journal entries for the home office and branch locations of a company to illustrate the accounting process.
3) The problems demonstrate how to prepare individual financial statements for the home office and branch, combined financial statements, and reconcile the branch and home office accounts.
This document provides information from an audit of the cash and cash equivalents of various companies. It includes bank balances, petty cash amounts, outstanding checks, restricted funds, and other cash-like items. Based on this information and audit procedures, the assistant is asked to calculate adjusted cash balances and amounts that would be reported on the balance sheet for each case.
The document discusses the installment sales method for calculating taxes on property sold using a payment plan. It provides formulas for calculating selling price, contract price, initial payment, gross profit, income to report, and taxes due. Examples are given of applying the formulas to different property sale scenarios, such as residential property, inventory, and stock, to determine the taxable income and taxes owed each year based on payments received.
03 chapter 4 deductions from gross estate part 02Flab Villasencio
This document discusses various deductions that can be taken from a gross estate for tax purposes in the Philippines, including ordinary expenses, losses, indebtedness, taxes, transfers for public use, and amounts received by heirs. It provides details on vanishing deductions, which allow a deduction on property received within 5 years that was previously taxed. An example calculation is shown for a vanishing deduction involving property inherited by Gina Dan from her mother Pina Dan that increased in value over time.
The document discusses the dissolution of partnerships through changes in ownership. It defines dissolution as a change in the relationship between partners caused by any partner ceasing to be involved in the business. Dissolution is distinguished from liquidation, which ends the business operations. Causes of dissolution include the admission, withdrawal, death, or incorporation of a partner. A new partner can be admitted through purchasing an interest from existing partners or investing new assets, with the consent of continuing partners. Accounting entries are provided to record various scenarios of partner admission.
The document provides information about an inventory class including:
- Topics covered inventories, inventory valuation, biological assets, gross profit, and retail inventory method.
- Formulas and calculations for inventory costing methods like FIFO, weighted average, and retail inventory method are presented.
- An example problem demonstrates estimating ending inventory cost using the gross profit method.
The document discusses key definitions and concepts from the Code of Ethics for Professional Accountants in the Philippines. It provides multiple choice questions to test understanding of terms like independence, financial interest, firm, advertising, and definitions of professional accountants in public practice and those in existing practice. The questions cover topics like modifications made to the International Federation of Accountants (IFAC) Code, definitions of assurance engagements and the assurance team, and exceptions to various definitions.
The document provides multiple choice answers and solutions to problems related to corporate liquidation. It includes:
1) Multiple choice questions and answers related to estimating amounts recovered by different classes of creditors in a bankruptcy proceeding.
2) Detailed solutions to sample liquidation problems showing calculations to estimate amounts recovered by secured, priority, and unsecured creditors.
3) Statements of affairs, realization and liquidation, and balance sheets to illustrate the accounting entries for a company going through bankruptcy liquidation.
The document provides relevant information and step-by-step workings for understanding corporate bankruptcy proceedings and estimating creditor recoveries.
1) The document contains multiple choice questions and problems related to accounting for branches.
2) It provides income statements, balance sheets, and journal entries for the home office and branch locations of a company to illustrate the accounting process.
3) The problems demonstrate how to prepare individual financial statements for the home office and branch, combined financial statements, and reconcile the branch and home office accounts.
This document provides information from an audit of the cash and cash equivalents of various companies. It includes bank balances, petty cash amounts, outstanding checks, restricted funds, and other cash-like items. Based on this information and audit procedures, the assistant is asked to calculate adjusted cash balances and amounts that would be reported on the balance sheet for each case.
The document discusses the installment sales method for calculating taxes on property sold using a payment plan. It provides formulas for calculating selling price, contract price, initial payment, gross profit, income to report, and taxes due. Examples are given of applying the formulas to different property sale scenarios, such as residential property, inventory, and stock, to determine the taxable income and taxes owed each year based on payments received.
03 chapter 4 deductions from gross estate part 02Flab Villasencio
This document discusses various deductions that can be taken from a gross estate for tax purposes in the Philippines, including ordinary expenses, losses, indebtedness, taxes, transfers for public use, and amounts received by heirs. It provides details on vanishing deductions, which allow a deduction on property received within 5 years that was previously taxed. An example calculation is shown for a vanishing deduction involving property inherited by Gina Dan from her mother Pina Dan that increased in value over time.
The document discusses the dissolution of partnerships through changes in ownership. It defines dissolution as a change in the relationship between partners caused by any partner ceasing to be involved in the business. Dissolution is distinguished from liquidation, which ends the business operations. Causes of dissolution include the admission, withdrawal, death, or incorporation of a partner. A new partner can be admitted through purchasing an interest from existing partners or investing new assets, with the consent of continuing partners. Accounting entries are provided to record various scenarios of partner admission.
The document provides information about an inventory class including:
- Topics covered inventories, inventory valuation, biological assets, gross profit, and retail inventory method.
- Formulas and calculations for inventory costing methods like FIFO, weighted average, and retail inventory method are presented.
- An example problem demonstrates estimating ending inventory cost using the gross profit method.
The document discusses key definitions and concepts from the Code of Ethics for Professional Accountants in the Philippines. It provides multiple choice questions to test understanding of terms like independence, financial interest, firm, advertising, and definitions of professional accountants in public practice and those in existing practice. The questions cover topics like modifications made to the International Federation of Accountants (IFAC) Code, definitions of assurance engagements and the assurance team, and exceptions to various definitions.
This document outlines accounting procedures for home office and branch operations. It discusses how transactions between the home office, branches, and sales agencies are recorded. Specific topics covered include establishing branches, allocating expenses between the home office and branches, reconciling reciprocal accounts, and eliminating unrealized intercompany profits from inventory shipped between locations billed at a price above cost. The document provides examples of journal entries for common transactions and observations on key accounting concepts.
This document discusses the characteristics and legal requirements of pledges and chattel mortgages under Philippine law. It defines pledge as an accessory contract where ownership is retained by the debtor and possession is held by the creditor or third party. Chattel mortgages similarly use movable property as security for a debt but involve registration. The document outlines the rights and obligations of parties to pledges and chattel mortgages and how they can be extinguished or foreclosed upon in the event of nonpayment.
Chapter 1 - The Information System: An Accountant's Perspectiveermin08
This chapter discusses accounting information systems from an accountant's perspective. It defines key terms like transactions, accounting information systems, and management information systems. It describes the general model for information systems, including data sources, transforming data into information through collection, processing, management and generation. It also outlines the organizational structure of businesses and accounting's unique roles, including participating in systems design and performing external financial audits, internal audits, and fraud audits.
1) The document provides multiple choice answers and solutions to questions about distributing partnership profits and calculating average capital amounts.
2) It includes examples of distributing total profits between partners based on profit sharing ratios, interest earned on capital amounts, salaries, and balancing distributions.
3) The questions cover topics like calculating average capital over time, determining bonus amounts, distributing net income between partners.
This document discusses transfer taxes and estate taxes. It defines a transfer tax and differentiates between an estate tax and a donor's tax. It also covers the nature and concept of succession. Specifically, it defines succession as the transmission of a deceased person's property, rights and obligations to heirs through death. The document outlines the key elements of succession including the decedent, heir and estate. It also categorizes the different types of succession, heirs, and persons authorized to manage an estate.
03 chapter 4 deductions from gross estate part 01Flab Villasencio
The document discusses various deductions that are allowed from the gross estate in arriving at the net taxable estate under Philippine tax law. It covers ordinary and special expenses such as funeral expenses, judicial expenses, casualty losses, claims against the estate, claims against insolvent persons, unpaid mortgages, and unpaid taxes. Examples are provided to illustrate how to compute the allowable deductions for various items such as funeral expenses, judicial expenses, and claims against insolvent persons.
The document provides objectives and content for Chapter 4 of the textbook "Accounting Information Systems, 6th edition". It covers the revenue cycle, including key processes like sales orders, billing, cash receipts, and collections. It describes the flow of transactions, necessary documents and journals, risks and controls at each step. It also discusses how technology can automate or reengineer the revenue cycle through systems like real-time processing, EDI, point-of-sale, and the implications for internal controls in computer-based environments.
This document outlines the objectives and key concepts discussed in Chapter 2 of the textbook "Accounting Information Systems, 6th edition". It discusses the three transaction cycles of expenditures, conversions, and revenues. It describes the traditional manual accounting records and their computer-based equivalents. It also explains documentation techniques for computerized accounting systems such as entity relationship diagrams, data flow diagrams, document flowcharts, system flowcharts, and program flowcharts. Finally, it compares batch processing versus real-time processing approaches.
The document discusses partnership dissolution and the admission of new partners. It provides examples of admitting a new partner through the purchase of interest from existing partners or through direct investment in the partnership. When a partner purchases interest, journal entries debit the selling partners' capital accounts and credit the new partner's capital account. When a partner invests, their capital account is credited for the amount invested, with any difference allocated to existing partners. The document provides multiple examples and requirements to practice different partnership admission scenarios.
This document contains a true/false and multiple choice partnership reviewer with 57 true/false statements and 58 multiple choice questions about partnerships. It covers topics such as the definition of a partnership, characteristics of general partnerships, advantages and disadvantages of partnerships compared to corporations, admitting and withdrawing partners, partnership dissolution and liquidation. The reviewer is intended to assess a student's understanding of key concepts relating to partnerships.
The document discusses accounting for current liabilities related to premiums, rebates, and loyalty programs offered by companies to customers. It provides examples of accounting entries for premium plans where goods like bowls are offered to customers in exchange for product wrappers/labels. It also discusses how to account for estimated liabilities from cash rebates and discount coupons expected to be redeemed in the future according to past redemption rates. The document concludes with an example of how to account for a customer loyalty program under IFRS 15, where points earned today may be redeemed for future goods/services.
The document discusses the essential requisites of contracts under Philippine law. It states there must be (1) consent of the parties, (2) a certain object, and (3) a cause for the contract to be valid. Consent requires an offer and acceptance that relates to the object and cause of the contract. Essential elements are those needed for a contract to exist, while natural and accidental elements refer to regular or special stipulations the parties include. Mistakes as to substantial facts can invalidate consent, but errors in minor details typically do not unless they could have been avoided.
This document defines key terms related to cash and cash management. It discusses how cash belongs to the broader category of financial assets, and defines cash items and cash equivalents. It also describes the establishment and use of petty cash funds, bank reconciliation procedures, and various adjustments that may reconcile the bank balance to the company's records.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
This document discusses key concepts relating to contracts under Philippine law. It defines important terms like cause, motive, inadequacy of cause, and reformation. It also discusses requisites of a valid contract, effects of false cause, distinguishing objects and causes in contracts of sale, and when reformation of a written contract is permitted compared to annulment. Several problems are presented relating to determining the legality of contracts and eligibility for reformation in cases of mutual mistake.
This document summarizes key concepts related to sales contracts under Philippine law. It defines a contract of sale as an agreement where one party transfers ownership of a determinate thing in exchange for a certain price. It outlines elements of a valid sales contract, different types of sales contracts, rules regarding risk of loss, warranties, and remedies. It also distinguishes between sales contracts and other similar agreements like agency, contracts for work, and option contracts.
This document outlines the procedures an auditor takes to complete an audit. It discusses reviewing events after the financial year, ensuring the going concern assumption is appropriate, identifying contingent liabilities, obtaining management representation, performing analytical procedures to review the financial statements, evaluating audit findings, and communicating with the entity. The auditor is responsible for considering subsequent events, accounting for them, and issuing modified reports if necessary. Analytical procedures help form an overall conclusion on the consistency of the financial information.
The document discusses various methods for allocating profits and losses among partners in a partnership. It provides examples of journal entries to record profit or loss allocations based on the partners' capital account balances and ratios. The examples allocate $300,000 in profit equally, based on original capital contributions, ending capital balances, and average capital balances. It also provides an example of allocating profit by providing 15% interest on average capital balances and splitting the remaining balance equally.
This document provides an ACC 401 Week 2 Quiz from Strayer University. It includes 30 multiple choice questions covering topics related to business combinations and the conceptual framework. It also includes 2 problems related to calculating reasonable offering prices for acquiring companies based on capitalizing excess earnings over normal rates of return on net assets.
This document outlines accounting procedures for home office and branch operations. It discusses how transactions between the home office, branches, and sales agencies are recorded. Specific topics covered include establishing branches, allocating expenses between the home office and branches, reconciling reciprocal accounts, and eliminating unrealized intercompany profits from inventory shipped between locations billed at a price above cost. The document provides examples of journal entries for common transactions and observations on key accounting concepts.
This document discusses the characteristics and legal requirements of pledges and chattel mortgages under Philippine law. It defines pledge as an accessory contract where ownership is retained by the debtor and possession is held by the creditor or third party. Chattel mortgages similarly use movable property as security for a debt but involve registration. The document outlines the rights and obligations of parties to pledges and chattel mortgages and how they can be extinguished or foreclosed upon in the event of nonpayment.
Chapter 1 - The Information System: An Accountant's Perspectiveermin08
This chapter discusses accounting information systems from an accountant's perspective. It defines key terms like transactions, accounting information systems, and management information systems. It describes the general model for information systems, including data sources, transforming data into information through collection, processing, management and generation. It also outlines the organizational structure of businesses and accounting's unique roles, including participating in systems design and performing external financial audits, internal audits, and fraud audits.
1) The document provides multiple choice answers and solutions to questions about distributing partnership profits and calculating average capital amounts.
2) It includes examples of distributing total profits between partners based on profit sharing ratios, interest earned on capital amounts, salaries, and balancing distributions.
3) The questions cover topics like calculating average capital over time, determining bonus amounts, distributing net income between partners.
This document discusses transfer taxes and estate taxes. It defines a transfer tax and differentiates between an estate tax and a donor's tax. It also covers the nature and concept of succession. Specifically, it defines succession as the transmission of a deceased person's property, rights and obligations to heirs through death. The document outlines the key elements of succession including the decedent, heir and estate. It also categorizes the different types of succession, heirs, and persons authorized to manage an estate.
03 chapter 4 deductions from gross estate part 01Flab Villasencio
The document discusses various deductions that are allowed from the gross estate in arriving at the net taxable estate under Philippine tax law. It covers ordinary and special expenses such as funeral expenses, judicial expenses, casualty losses, claims against the estate, claims against insolvent persons, unpaid mortgages, and unpaid taxes. Examples are provided to illustrate how to compute the allowable deductions for various items such as funeral expenses, judicial expenses, and claims against insolvent persons.
The document provides objectives and content for Chapter 4 of the textbook "Accounting Information Systems, 6th edition". It covers the revenue cycle, including key processes like sales orders, billing, cash receipts, and collections. It describes the flow of transactions, necessary documents and journals, risks and controls at each step. It also discusses how technology can automate or reengineer the revenue cycle through systems like real-time processing, EDI, point-of-sale, and the implications for internal controls in computer-based environments.
This document outlines the objectives and key concepts discussed in Chapter 2 of the textbook "Accounting Information Systems, 6th edition". It discusses the three transaction cycles of expenditures, conversions, and revenues. It describes the traditional manual accounting records and their computer-based equivalents. It also explains documentation techniques for computerized accounting systems such as entity relationship diagrams, data flow diagrams, document flowcharts, system flowcharts, and program flowcharts. Finally, it compares batch processing versus real-time processing approaches.
The document discusses partnership dissolution and the admission of new partners. It provides examples of admitting a new partner through the purchase of interest from existing partners or through direct investment in the partnership. When a partner purchases interest, journal entries debit the selling partners' capital accounts and credit the new partner's capital account. When a partner invests, their capital account is credited for the amount invested, with any difference allocated to existing partners. The document provides multiple examples and requirements to practice different partnership admission scenarios.
This document contains a true/false and multiple choice partnership reviewer with 57 true/false statements and 58 multiple choice questions about partnerships. It covers topics such as the definition of a partnership, characteristics of general partnerships, advantages and disadvantages of partnerships compared to corporations, admitting and withdrawing partners, partnership dissolution and liquidation. The reviewer is intended to assess a student's understanding of key concepts relating to partnerships.
The document discusses accounting for current liabilities related to premiums, rebates, and loyalty programs offered by companies to customers. It provides examples of accounting entries for premium plans where goods like bowls are offered to customers in exchange for product wrappers/labels. It also discusses how to account for estimated liabilities from cash rebates and discount coupons expected to be redeemed in the future according to past redemption rates. The document concludes with an example of how to account for a customer loyalty program under IFRS 15, where points earned today may be redeemed for future goods/services.
The document discusses the essential requisites of contracts under Philippine law. It states there must be (1) consent of the parties, (2) a certain object, and (3) a cause for the contract to be valid. Consent requires an offer and acceptance that relates to the object and cause of the contract. Essential elements are those needed for a contract to exist, while natural and accidental elements refer to regular or special stipulations the parties include. Mistakes as to substantial facts can invalidate consent, but errors in minor details typically do not unless they could have been avoided.
This document defines key terms related to cash and cash management. It discusses how cash belongs to the broader category of financial assets, and defines cash items and cash equivalents. It also describes the establishment and use of petty cash funds, bank reconciliation procedures, and various adjustments that may reconcile the bank balance to the company's records.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
This document discusses key concepts relating to contracts under Philippine law. It defines important terms like cause, motive, inadequacy of cause, and reformation. It also discusses requisites of a valid contract, effects of false cause, distinguishing objects and causes in contracts of sale, and when reformation of a written contract is permitted compared to annulment. Several problems are presented relating to determining the legality of contracts and eligibility for reformation in cases of mutual mistake.
This document summarizes key concepts related to sales contracts under Philippine law. It defines a contract of sale as an agreement where one party transfers ownership of a determinate thing in exchange for a certain price. It outlines elements of a valid sales contract, different types of sales contracts, rules regarding risk of loss, warranties, and remedies. It also distinguishes between sales contracts and other similar agreements like agency, contracts for work, and option contracts.
This document outlines the procedures an auditor takes to complete an audit. It discusses reviewing events after the financial year, ensuring the going concern assumption is appropriate, identifying contingent liabilities, obtaining management representation, performing analytical procedures to review the financial statements, evaluating audit findings, and communicating with the entity. The auditor is responsible for considering subsequent events, accounting for them, and issuing modified reports if necessary. Analytical procedures help form an overall conclusion on the consistency of the financial information.
The document discusses various methods for allocating profits and losses among partners in a partnership. It provides examples of journal entries to record profit or loss allocations based on the partners' capital account balances and ratios. The examples allocate $300,000 in profit equally, based on original capital contributions, ending capital balances, and average capital balances. It also provides an example of allocating profit by providing 15% interest on average capital balances and splitting the remaining balance equally.
This document provides an ACC 401 Week 2 Quiz from Strayer University. It includes 30 multiple choice questions covering topics related to business combinations and the conceptual framework. It also includes 2 problems related to calculating reasonable offering prices for acquiring companies based on capitalizing excess earnings over normal rates of return on net assets.
Intermediate Accounting Volume 2 6th Edition Beechy Test Bankgoqaho
This document contains true/false questions pertaining to accounting for provisions, contingencies, and liabilities. It tests understanding of key concepts such as when to recognize a provision or contingency, how to estimate amounts, and the different accounting requirements under IFRS and ASPE. Correct answers are determined by applying definitions and guidance related to identifying, measuring, and presenting provisions, contingencies and liabilities in financial statements.
Strayer university acc 304 week 9 chapter 13 and chapter 14 quiz (all possibl...shyaminfotech
ACC 304 Week 9 Quiz – Strayer NEW
Week 9 Quiz 5: Chapter 13, Quiz 6: Chapter 14
CURRENT LIABILITIES AND CONTINGENCIES
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. A zero-interest-bearing note payable that is issued at a discount will not result in any interest expense being recognized.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes 27 multiple choice questions covering topics from chapters 15 and 16 such as stock dividends, stock splits, treasury stock transactions, and theories of equity. It also includes a link to purchase the quiz answers in order to achieve an A grade.
This document provides a summary of an ACC 563 Week 10 Quiz from Strayer University. It includes multiple choice and essay questions covering chapters 15 and 16 on stockholders' equity and consolidated financial statements. The questions assess understanding of topics like stock dividends, treasury stock, consolidated statements, and segment reporting. The document aims to help students prepare for and complete the ACC 563 Week 10 Quiz.
University of Maryland University Coll.docxjoyjonna282
University of Maryland University College
ACCT221 Principles of Accounting II Instructor: Anita Doherty
MID-TERM EXAM
Multiple Choice (2 points each)
1. Which one of the following is not necessary in order for a
corporation to pay a cash dividend?
a. Approval of stockholders
b. Adequate cash
c. Declaration of dividends by the board of directors
d. Retained earnings
2. Which one of the following events would not require a formal journal
entry on a corporation's books?
a. 100% stock dividend
b. 2 for 1 stock split
c. 2% stock dividend
d. $1 per share cash dividend
3. Buick, Inc. has 5,000 shares of 6%, $100 par value, noncumulative
preferred stock and 100,000 shares of $1 par value common stock
outstanding at December 31, 2012, and December 31, 2013. The board
of directors declared and paid a $20,000 dividend in 2012. In 2013,
$40,000 of dividends are declared and paid. What are the dividends
received by the preferred and common shareholders in 2013?
Preferred Common
————————— ———————
a. $0 $40,000
b. $30,000 $10,000
c. $20,000 $20,000
d. $40,000 $0
4. A prior period adjustment that corrects income of a prior period
requires that an entry be made to
a. an income statement account.
b. a current year revenue or expense account.
c. an asset account.
d. the retained earnings account
5. The discontinued operations section of the income statement refers
to
a. discontinuance of a product line.
b. the income or loss on products that have been completed and sold.
c. obsolete equipment and discontinued inventory items.
d. the disposal of a significant segment of a business.
6. Indicate the circumstances under which an item would be classified
as an extraordinary item on the income statement.
Unusual in Nature Infrequent in Occurrence
—————————————————
a. Yes No
b. No Yes
c. Yes Yes
d. No No
7. From the standpoint of the issuing company, a disadvantage of using
bonds as a means of long-term financing is that
a. bond interest is deductible for tax purposes.
b. interest must be paid on a periodic basis regardless of earnings.
c. income to stockholders may increase as a result of trading on the
equity.
d. the bondholders do not have voting rights.
8. Bonds that are secured by real estate are termed
a. mortgage bonds.
b. serial bonds.
c. debentures.
d. bearer bonds.
9. The contractual interest rate is always stated as a(n)
a. monthly rate.
b. daily rate.
c. semiannual rate.
d. annual rate.
10. If the market interest rate is grea ...
This document provides a sample exam for an ACC 422 final exam. It contains 40 multiple choice questions covering various accounting topics related to financial reporting, including cash, receivables, inventory valuation methods, long-term assets, and intangible assets such as goodwill. The questions assess understanding of accounting principles for classifying, measuring, and reporting these items in accordance with Generally Accepted Accounting Principles (GAAP).
Strayer university acc 304 week 7 chapter 12 quiz (all possible questions) newshyaminfotech
ACC 304 Week 7 Quiz – Strayer NEW
Week 7 Quiz 4: Chapter 12
INTANGIBLE ASSETS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. Intangible assets derive their value from the right (claim) to receive cash in the future.
2. Internally created intangibles are recorded at cost.
This document contains multiple choice questions testing knowledge of accounting concepts related to liabilities, provisions, and contingencies. The questions cover topics such as the definition of liabilities, classification of current vs non-current liabilities, recognition of provisions, and accounting treatment of contingent assets and liabilities.
QUESTION 1A change from the cost method to the equity method of .docxJUST36
QUESTION 1
A change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
A.
Only footnote disclosure
B.
That the cumulative amount of the change be shown as a line item on the income statement, net of tax
C.
That the change be accounted for currently and prospectively.
D.
Retroactive restatement as if the investor always had used the equity method
QUESTION
2
Which one of
the follow
ing is not a limitation of consolidated financial statements?
A.
Poor performance of one or more companies may be hidden by good performance of others.
B.
Information about the financial status and results of operations of the economic entity will be reported.
C.
All the consolidated retained earnings balance may not be available for dividends of the parent.
D.
Supplemental information about individual companies or groups of companies included in consolidated statements may be necessary for a fair presentation.
QUESTION 3
Which of the laws belo
w regulate the i
nitial dis
tribution of security issues in the United States?
Securities Exchange
Securities
Act of 1934
Act of 1933
A)
Yes
Yes
B)
Yes
No
C)
No
Yes
D)
No
No
A.
item A
B.
item B
C.
item C
D.
item D
QUESTION 4
The SEC requires a full and fair disclosur
e of informati
on about c
ompanies so that:
A.
investors can assess the investment quality of registered securities.
B.
the SEC can assess the investment quality of registered securities.
C.
the SEC can assess the credit worthiness of registered companies.
D.
all of the above.
QUESTION 5
Which of the following situations best describes a business combi
nation to be acc
ounted for
as a statutory merger?
A.
All of the outstanding stock of a company is acquired.
B.
Cash or other consideration is exchanged for total net assets of another company.
C.
Two companies combine to form a new third company, and the original two companies are dissolved.
D.
One company transfers assets to another company it has created.
QUESTION 6
Which one of the following items results in an identical decrease in an investor's investm
ent account unde
r both the
cost method and the equity method?
A.
Liquidating dividends from the investor's point of view.
B.
Dividend payments.
C.
Sale of one-half of the shares owned by the investor.
D.
Amortization of cost over book value.
QUESTION 7
The history of securities regulation can be traced to:
A.
medieval times.
B.
18th century English Parliament's pa
ssage of the B
ubble Acts
.
C.
18th century creation of New York Stock Exchange.
D.
the stock market crash of 1929.
QUESTION 8
Which statement below is correct about Form 10Q?
A.
This form contains a company's interim financial statements and is due 45 days after t
he end of each o
f the four
quarters.
B.
This form contains a company's Basic Information Package and is due 45 da ...
1. Internal reconstruction involves altering or reducing the claims of shareholders, creditors, and other liabilities of a company experiencing losses or overvaluation of assets, in order to write off accumulated losses and show a true financial position. This can involve reorganizing share capital through actions like increasing or decreasing share capital.
2. Amalgamation is the merging of two or more companies, and can reduce competition and costs while achieving economies of scale. There are two types: amalgamation in the nature of a merger, and amalgamation in the nature of a purchase.
3. External reconstruction involves liquidating an existing financially troubled company and starting a new company to take over its assets and liabilities. It differs from internal reconstruction
Corporate Finance Canadian 7th Edition Jaffe Test BankDaceyDaceys
Full download : http://alibabadownload.com/product/corporate-finance-canadian-7th-edition-jaffe-test-bank/ Corporate Finance Canadian 7th Edition Jaffe Test Bank
The document appears to be a practice exam for an accounting course (ACC 423) covering various topics related to accounting for debt, equity, earnings per share, investments, and other accounting issues. It contains 24 multiple choice questions testing understanding of accounting treatments for issues like convertible debt, preferred stock conversions, treasury stock, diluted earnings per share, stock dividends, investments, and more. The exam provides answers that can be downloaded separately.
The document appears to be a practice exam for an accounting course (ACC 423) covering various topics related to accounting for debt, equity, earnings per share, investments, and other accounting issues. It contains 24 multiple choice questions testing understanding of accounting treatments for issues like convertible debt, preferred stock conversions, treasury stock, diluted earnings per share, stock dividends, investments, and more. The exam provides answers that can be downloaded separately.
The document appears to be a practice exam for an accounting course (ACC 423) final exam. It contains 30 multiple choice questions covering various accounting topics like accounting for debt, equity, earnings per share, investments, pensions, income taxes, and financial instruments. The questions test understanding of accounting principles for different transactions and financial statement elements.
This document provides an excerpt from an accounting textbook chapter on business combinations. It includes 22 multiple choice questions regarding the accounting treatment for various types of business combinations, such as mergers, acquisitions, and consolidations. The questions cover topics like identifying the type of combination, determining the appropriate accounting for assets and liabilities in an acquisition, calculating goodwill, and accounting for acquisition-related costs. The correct answers to each multiple choice question are provided along with brief explanations.
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1. SAN SEBASTIAN COLLEGE RECOLETOS DE CAVITE
Business Combinations Midterm
Christopher C. Lim
Multiple Choice: Choose the best answer from the given choices. Make a summary of your final
answers
Test 1 Theory Questions 1 point each
1. In a business combination, how should long-term debt of the acquired company generally be
recognized on acquisition date?
a. Fair value
b. Amortized cost
c. Carrying amount
d. Fair value less costs to sell
2. In a business combination accounted for under the acquisition method, the fair value of the net
identifiable assets acquired exceeded the consideration transferred. How should the excess fair value
be reported?
a. As negative goodwill, recognized in profit or loss in the period the business combination occurred.
b. As an extraordinary gain.
c. As a reduction of the values assigned to noncurrent assets and an extraordinary gain for any
unallocated portion.
d. As positive goodwill.
3. The costs of issuing equity securities in a business combination are
a. expensed
b. treated as direct reduction in equity
c. included in the initial measurementof the credit to share capital account
d. b and c
4. The costs of issuing debt securities in a business combination are
a. expensed
b. included in the initial measurement of the debt securities issued
c. accounted for like a “discount” on liability
d. b and c
5. A business combination is accounted for properly as an acquisition. Direct costs of combination, other
than registration and issuance costs of equity securities, should be:
a. Capitalized as a deferred charge and amortized.
b. Deducted directly from the retained earnings of the combined corporation.
c. Deducted in determining the net income of the combined corporation for the period in which the
costs were incurred.
d. Included in the acquisition cost to be allocated to identifiable assets according to their fair values.
6. PDX Corp. acquired 100% of the outstanding common stock of Sea Corp. in an acquisition
transaction. The cost of the acquisition exceeded the fair value of the identifiable assets and assumed
liabilities. The general guidelines for assigning amounts to the inventories acquired provide for:
a. Raw materials to be valued at original cost.
b. Work in process to be valued at the estimated selling prices of finished goods, less both costs to
complete and costs of disposal.
c. Finished goods to be valued at replacement cost.
d. Inventories to be valued at acquisition-date fair values.
2. 7. A business combination is accounted for as an acquisition. Which of the following expenses related to
the business combination should be included, in total, in the determination of net income of the
combined corporation for the period in which the expenses are incurred?
Fees of finders and Registration fees
consultants for equity securities issued
a. Yes Yes
b. Yes No
c. No Yes
d. No No
8. Easton Company acquired Lofton Company in a business combination. Easton was able to acquire
Lofton at a bargain price. The fair value of the net identifiable assets acquired exceeded the
consideration transferred to Lofton. After revaluing noncurrent assets to zero, there was still some
"negative goodwill." Proper accounting treatment by Easton is to report the amount as
a. an extraordinary gain.
b. part of current income in the year of combination.
c. a deferred credit and amortize it.
d. paid-in capital.
9. Goodwill may be capitalized
a. only when it arises in a business combination.
b. only when it is created internally.
c. only when it is purchased
d. on any of these cases.
10. A contingent liability assumed in a business combination is recognized
a. if it is a present obligation that arises from past events and
b. if its fair value can be measured reliably.
c. even if it has an improbable outflow of resources embodying economic benefits.
d. All of these
11. Given the following information, how is goodwill from a business combination computed under PFRS
3?
A = Consideration transferred
B = Non-controlling interest in net assets of subsidiary
C = Previously held equity interest
D = Fair value of net identifiable assets of subsidiary
% = Percentage of ownership acquired by the parent in the subsidiary
a. A+B+C-D c. (A+C) – (D x %)
b. A – (D x %) d. (A+B) – [(D x %) – B]
12. PFRS 3 requires that the contingent liabilities of the acquired entity should be recognized in the
balance sheet at fair value. The existence of contingent liabilities is often reflected in a lower
purchase price. Recognition of such contingent liabilities will
a. Decrease the value attributed to goodwill, thus decreasing the risk of impairment of goodwill.
b. Decrease the value attributed to goodwill, thus increasing the risk of impairment of goodwill.
c. Increase the value attributed to goodwill, thus decreasing the risk of impairment of goodwill.
d. Increase the value attributed to goodwill, thus increasing the risk of impairment of goodwill.
13. Are the following statements about an acquisition true or false, according to PFRS 3 Business
combinations?
I. The acquirer should recognize the acquiree's contingent liabilities if certain conditions are met.
II. The acquirer should recognize the acquiree's contingent assets if certain conditions are met.
a. False, False b. False, True c. True, False d. True, True
3. 14. An acquirer should at the acquisition date recognize goodwill acquired in a business combination as
an asset. Goodwill should be accounted for as follows:
a. Recognize as an intangible asset and amortize over its useful life.
b. Write off against retained earnings.
c. Recognize as an intangible asset and impairment test when a trigger event occurs.
d. Recognize as an intangible asset and annually impairment test (or more frequently if impairment
is indicated).
15. On September 1, 20x1, TEPID Co. acquired LUKEWARM Co. in a business combination that resulted
to goodwill. By December 31, 20x1, the initial allocation of goodwill is not yet completed. According
to PAS 36, TEPID should
a. complete the initial allocation before the end of December 31, 20x1.
b. complete the initial allocation before the end of December 31, 20x2.
c. complete the initial allocation before the end of November 30, 20x1.
d. complete the initial allocation before the end of September 1, 20x2.
16. On September 1, 20x1, TEPID Co. acquired LUKEWARM Co. in a business combination that resulted
to goodwill. By December 31, 20x1, the initial allocation of goodwill is not yet completed. According
to PAS 36, TEPID should
a. complete the initial allocation before the end of December 31, 20x1.
b. complete the initial allocation before the end of December 31, 20x2.
c. complete the initial allocation before the end of November 30, 20x1.
d. complete the initial allocation before the end of September 1, 20x2.
17. Which of the following methods must be applied in accounting for business combinations under PFRS
3?
a. acquirer method c. purchase method
b. acquisition method d. pooling of interest
18. The company that obtains control over another company in a business combination transaction is
referred to as the
a. acquirer c. subsidiary
b. parent d. a and b
19. According to PFRS 3, which of the following transaction costs would increase the amount of goodwill
from a business combination?
a. legal fees, accounting fees and similar costs
b. issuance costs of equity securities
c. issuance costs of debt instruments
d. none of these
20. This refers to the additional consideration for a business combination to be given to the acquiree
upon the happening of a contingencywhich is pre-agreed at the acquisition date.
a. Contingent liability
b. Contingent asset
c. Contingent consideration
d. Additional compensation
Test 2Problems Solving Questions 3 points each
P Corporation acquired 80% of the outstanding common stock of S Company on July 1, 2021, for
P220,000. S Company’s stockholders’ equity on July 1, 2021, were as follows:
Common stock, P5 par P100,000
Additional paid-in capital 40,000
Retained earnings 80,000
4. P220,000
Current fair value of S Company’s identifiable net assets exceeded their book values as follows:
Excess of current fair value over book values
Inventories P10,000
Plant assets (net) (economic life 10 years) 20,000
Patents (net) (economic life 5 years) 8,000
P Corporation uses the cost method to account for its investment in S Company. Both P Corporation and
S Company include depreciation expense and amortization expense in operating expense. Both
companies use the straight line method for depreciation and amortization. No impairment of goodwill is
to be recognized. For the six-month ended December 31, 2021 and for the year-ended December 31,
2022. S Company reported net income and declared and paid dividends as follows:
Net Income Dividends
P Corp. S Co. P Corp. S Co.
2021 P40,000 P32,000 P30,000 P24,000
2022 60,000 48,000 32,000 30,000
Retained earnings, July 1, 2021 of Parent is P100,000. Also on that date, Parent Company's common
stock is P150,000; additional paid in capital is P70,000. Non Controlling Interest have a fair market value
of P55,000.
1. What is the consolidated stockholder's equity as of December 31, 2022?
a. P423,600 b. P418,400 c. P421,560 d. P418,880
2. What is the consolidated net income attributable to parent for the six-month ended December 31,
2021?
a. P35,52038,520 c. 41,000 d. P36,960
3. What is the NCI in the net assets of S Company as of December 31, 2022?
a. P53,360 b. P57,120 c. P50,840 d. P50,480
4. What is the NCI in the net income for the six-month ended December 31, 2021?
a. P4,680 b. P3,680 c. P4,400 d. P4,040
5. What is the Consolidated retained earnings as of December 31, 2022?
a. P145,040 b. P151,080 c. P146,480 d. P148,040
On January 1, 20x1, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On
acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.’s
management believes that the fair value of the consideration transferred correlates to the fair value of
the controlling interest acquired and that the fair value of the controlling interest is proportionate to the
fair value of the remaining interest.
Guitar Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000,
respectively. The difference is attributable to a building with a remaining useful life of 6 years.
The December 31, 20x1 statements of financial position of Bass Co. and Guitar Co. are summarized
below:
Bass Co. Guitar Co.
ASSETS
Investment in subsidiary (at cost) 300,000 -
Other assets 1,372,000 496,000
TOTAL ASSETS 1,672,000 496,000
LIABILITIES AND EQUITY
Trade and other payables 292,000 120,000
Share capital 940,000 200,000
Retained earnings 440,000 176,000
5. Total equity 1,380,000 376,000
TOTAL LIABILITIES AND EQUITY 1,672,000 496,000
No dividends were declared by either entity during year. There were also no inter-company transactions
and impairment in goodwill.
6. What amount of goodwill is presented in the consolidated statement of financial position on
December 31, 20x1?
a. 40,000
b. 35,000
c. 20,000
d. 15,000
7. How much is the consolidated total assets as of December 31, 20x1?
a. 1,867,000
b. 1,907,000
c. 1,958,000
d. 1,974,000
8. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1?
a. 106,500 c. 136,500
b. 116,500 d. 146,500
9. How much is the consolidated retained earnings on December 31, 20x1?
a. 489,500 c. 534,500
b. 498,500 d. 543,500
10.How much is the consolidated total equity on December 31, 20x1?
a. 1,546,000 c. 1,642,000
b. 1,564,000 d. 1,624,000
On January 1, 20x1, Laughter Co. issued equity instruments in exchange for 75% interest in Tears Co.
Tears Co.’s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000,
respectively. The difference is attributable to a building with a remaining useful life of 6 years.
The December 31, 20x1 statements of profit or loss of Laughter Co. and Tears Co. are summarized
below:
Statements of profit or loss
For the year ended December 31, 20x1
Laughter Co. Tears Co.
Revenues 1,200,000 480,000
Operating expenses (960,000) (400,000)
Profit for the year 240,000 80,000
11.How much is the consolidated profit in 20x1?
a. 301,000 c. 320,000
b. 310,000 d. 336,000
12.How much is the consolidated profit attributable to owners of the parent in 20x1?
a. 292,500 c. 320,000
b. 310,000 d. 232,500
13.How much is the consolidated profit attributable to non-controlling interest in 20x1?
a. 6,500 c. 57,500
b. 17,500 d. 77,500
On January 1, 20x1, COLLOQUY Co. acquired all of the identifiable assets and assumed all of the
liabilities of CONVERSATION, Inc. by issuing its own ordinary shares. Information at acquisition date is
shown below:
6. COLLOQUY Co. CONVERSATION, Co.
Combined
entity
(carrying amounts) (fair values)
Identifiable assets 9,600,000 6,400,000 16,000,000
Goodwill - - ?
Total assets 9,600,000 6,400,000 ?
Liabilities 2,800,000 3,600,000 6,400,000
Share capital 2,400,000 1,200,000 2,800,000
Share premium 1,200,000 1,000,000 4,800,000
Retained earnings 3,200,000 600,000 ?
Total liabilities & equity 9,600,000 6,400,000 ?
Additional information:
COLLOQUY’s share capital consists of 60,000 ordinary shares with par value of ₱40 per share.
CONVERSATION’s share capital consists of 3,000 ordinary shares with par value of ₱400 per share.
14.How much is the fair value of consideration transferred on the business combination?
a. 4,000,000 b . 2,400,000 c. 4,400,000 d. 4,800,000
15.How many shares were issued in the business combination?
a. 40,000 b. 12,000 c. 36,000 d. 10,000
16.How much is the acquisition-date fair value per share?
a. 400 b. 440 c. 280 d. 360
17.How much goodwill was recognized on acquisition date?
a. 980,000 b. 1,200,000 c. 1,280,000 d. 1,080,000
18.What is the retained earnings of the combined entity immediately after the business combination?
a. 3,120,000 b. 3,320,000 c. 3,280,000 d. 3,200,000
On January 1, 20x1, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for ₱400,000.
Because the investment gave OBDURATE significant influence over STUBBORN, the investment was
accounted for under the equity method in accordance with PAS 28.
From 20x1 to the end of 20x3, OBDURATE recognized ₱200,000 net share in the profits of the associate
and ₱40,000 share in dividends. Therefore, the carrying amount of the investment in associate account
on January 1, 20x3, is ₱560,000.
On January 1, 20x4, OBDURATE acquired additional 60% ownership interest in STUBBORN, Inc. for
₱3,200,000. As of this date, OBDURATE has identified the following:
a. The previously held 30% interest has a fair value of ₱720,000.
b. STUBBORN’s net identifiable assets have a fair value of ₱4,000,000.
c. OBDURATE elected to measure non-controlling interests at the non-controlling interest’s
proportionate share of STUBBORN’s identifiable net assets.
19.How much is the goodwill?
a. 320,000 b. 240,000 c. 280,000 d. 360,000
OBSTREPEROUS Co. and NOISY, Inc. both engage in the same business. On January 1, 20x1,
OBSTREPEROUS and NOISY signed a contract, the terms of which resulted in OBSTREPEROUS obtaining
control over NOISY without any transfer of consideration between the parties.
The fair value of the identifiable net assets of NOISY, Inc. on January 1, 20x1 is ₱4,000,000. NOISY
chose to measure non-controlling interest at the non-controlling interest’s proportionate share of the
acquiree’s identifiable net assets.
20.How much is the goodwill?
a. 4,000,000 b.P0 c. a or b d. This is not a business combination