Solutions For Advanced Accounting, 5th Edition Hopkins (All Chapters included with Questions and answers)
5 views 0 purchase
Course
Advanced Accounting
Institution
Advanced Accounting
Solutions For Advanced Accounting, 5th Edition Hopkins (All Chapters included with Questions and answers)
1. Which of the following should appear in consolidated financial statements?
A. All intercompany transactions properly recorded on each affiliate's books.
B. Transactions between the co...
Solutions For Advanced Accounting, 5th Edition Hopkins
(All Chapters included with Questions and answers)
1. Which of the following should appear in consolidated financial statements?
A. All intercompany transactions properly recorded on each affiliate's books.
B. Transactions between the consolidated company and outside parties.
C. Transactions not accounted for by the simple equity method.
D. Lease transactions between a parent and subsidiary. - Correct AnswerB
2. Which of the following intercompany transactions would not require a
worksheet elimination in the consolidation process?
A. The subsidiary's payment of rent to its parent.
B. The sale of merchandise by a parent to its subsidiary.
C. The amount of a loan to the subsidiary made by its parent.
D. None of the above. - Correct AnswerD
3. Schiff Company owns 100% of the outstanding common stock of the Viel
Company. During 20X1, Schiff sold merchandise to Viel that Viel, in turn, sold
to unrelated firms. There were no such goods in Viel's ending inventory.
However, some of the intercompany purchases from Schiff had not yet been
paid. Which of the following amounts will be incorrect in the consolidated
statements if no adjustments are made?
A. inventory, accounts payable, net income
B. inventory, sales, cost of goods sold, accounts receivable C. sales, cost of
goods sold, accounts receivable, accounts payable.
D. accounts receivable, accounts payable - Correct AnswerC
4. The sale of inventory items by a parent company to an affiliated company
, A. enters the consolidated revenue computation only if the transfer was the
result of arm's length bargaining.
B. affects consolidated net income under a periodic inventory system but not
under a perpetual inventory system.
C. does not result in consolidated income until the merchandise is sold to
outside entities.
D. does not require a working paper adjustment if the merchandise was
transferred at cost. - Correct AnswerC
5. This year, Rose Company acquired all of the common stock of Hayley
Company. At the end of the current year, balances of selected accounts and
other information for each of the companies were as follows;At the end of
the year, 50% of the inventory that Rose sold to Hayley remained in Hayley's
inventory, and $30,000 of the amount of the sales was unpaid. Rose still
owes half of the amount of its purchases to Hayley, but had sold all of the
inventory it had acquired from Hayley by the end of the year. What is the
amount of consolidated sales at the end of the year?
A. $4,216,000
B. $4,316,000
C. $4,276,000
D. $4,246,000 - Correct AnswerA
6. This year, Rose Company acquired all of the common stock of Hayley
Company. At the end of the current year, balances of selected accounts and
other information for each of the companies were as follows;At the end of
the year, 50% of the inventory that Rose sold to Hayley remained in Hayley's
inventory, and $30,000 of the amount of the sales was unpaid. Rose still
owes half of the amount of its purchases to Hayley, but had sold all of the
inventory it had acquired from Hayley by the end of the year. What is the
consolidated Accounts receivable balance at the end of the year?
A. $815,000
B. $795,000
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 chairmanmorris555. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
