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Test Bank for Advanced Financial Accounting 13th Edition By Theodore Christensen $21.99   Add to cart

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

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  • Advanced Financial Accounting 13th Ed By Theodore

Test Bank for Advanced Financial Accounting 13th Edition By Theodore Christensen by Theodore E. Christensen (Author), David M. Cottrell (Author), Cassy Budd (Author)

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  • October 3, 2024
  • 917
  • 2024/2025
  • Exam (elaborations)
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  • Advanced Financial Accounting 13th Ed By Theodore
  • Advanced Financial Accounting 13th Ed By Theodore
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Test Bank for Advanced Financial Accounting
a a a a a a




13th Edition
a ca




By Theodore
c a c c c a




Christensen
c

, Table Of Contents:
c c




1. Intercorporate Acquisitions and Investments in Other Entities
c c c c c c



2. Reporting Intercorporate Investments and Consolidation of Wholly Owned
c c c c c c c



cSubsidiaries with No Differentialc c c



3. The Reporting Entity and the Consolidation of Less-Than-Wholly-Owned
c c c c c c c



cSubsidiaries with NoDifferential c c



4. Consolidation of Wholly Owned Subsidiaries Acquired at More Than Book Value
c c c c c c c c c c



5. Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More ThanBook
c c c c c c c c



cValue
6. Intercompany Inventory Transactions c c



7. Intercompany Transfers of Services and Noncurrent Assets
c c c c c c



8. Intercompany Indebtedness c



9. Consolidation Ownership Issues c c



10. Additional Consolidation Reporting Issues
c c c




11. Multinational Accounting: Foreign Currency Transactions and Financial
c c c c c c



cInstruments
12. Multinational Accounting: Issues in Financial Reporting and Translation of
c c c c c c c c



c ForeignEntity Statements
c c



13. Segment and Interim Reporting
c c c



14. SEC Reportingc



15. Partnerships: Formation, Operation, and Changes in Membership
c c c c c c



16. Partnerships: Liquidation c



17. Governmental Entities: Introduction and General Fund Accounting c c c c c c



18. Governmental Entities: Special Funds and Governmentwide Financial Statements
c c c c c c c



19. Not-for-Profit Entities c



20. Corporations in Financial Difficulty c c c

,TEST BANK FOR c c



Advanced Financial Accounting 13th Edition By Theodore Christensen c c c c c c c




Chapter 1 Intercorporate c cc c c Acquisitions and Investments in Other Entities c c c c c




1) Assuming no impairment in value prior to transfer, assets transferred by a parent company to
c c c c c c c c c c c c c c


another entity it has created should be recorded by the newly created entity at the assets':
c c c c c c c c c c c c c c c c


A) cost to the parent company.
c c c c


B) book value on the parent company's books at the date of transfer.
c c c c c c c c c c c


C) fair value at the date of transfer.
c c c c c c


D) fair value of consideration exchanged by the newly created entity.
c c c c c c c c c




Answer: B c


Difficulty: 1
c c


Easy
c


Topic: Internal Expansion: Creating a Business Entity; Valuation of Business Entities
c c c c c c c c c c


Learning Objective: 01-01 Understand and explain the reasons for and different methods of
c c c c c c c c c c c c c


business expansion, the types of organizational structures, and the types of acquisitions.;
c c c c c c c c c c c c


c01- 03 Make calculations and prepare journal entries for the creation of a business entity.
c c c c c c c c c c c c c c


Bloom's: Remember c


AACSB: Reflective
c c


Thinking AICPA: FN
c c c


Decision Making
c c




2) Given the increased development of complex business structures, which of the
c c c c c c c c c c


followingregulators is responsible for the continued usefulness of accounting reports?
c c c c c c c c c c c


A) Securities and Exchange Commission (SEC) c c c cc


B) Public Company Accounting Oversight Board (PCAOB)
c c c c c


C) Financial Accounting Standards Board (FASB) c c c c


D) All of the other answers are correct
c c c c c c




Answer: D c


Difficulty: 1
c c


Easy
c


Topic: An Introduction to Complex Business Structures c c c c c


Learning Objective: 01-01 Understand and explain the reasons for and different methods of
c c c c c c c c c c c c


business expansion, the types of organizational structures, and the types of acquisitions.
c c c c c c c c c c c c


Bloom's: Remember c


AACSB: Reflective
c c


Thinking AICPA: FN
c c c


Reporting
c




3) A business combination in which the acquired company's assets and liabilities are
c c c c c c c c c c c


combinedwith those of the acquiring company into a single entity is defined as:
c c c c c c c c c c c c c c


A) Stock acquisition c


B) Leveraged buyout c


C) Statutory Merger c


D) Reverse statutory rollup c c

, Answer: C c


Difficulty: 1
c c


Easy
c


Topic: Organizational Structure and Financial Reporting c c c c


Learning Objective: 01-04 Understand and explain the differences between different forms of
c c c c c c c c c c c


business combinations.
c c


Bloom's: Remember c


AACSB: Reflective
c c


Thinking AICPA: FN
c c c


Decision Making
c c




4) In which of the following situations do accounting standards not require that the financial
c c c c c c c c c c c c c


statements of the parent and subsidiary be consolidated?
c c c c c c c c


A) A corporation creates a new 100 percent owned subsidiary
c c c c c c c c


B) A corporation purchases 90 percent of the voting stock of another company
c c c c c c c c c c c


C) A corporation has both control and majority ownership of an unincorporated company
c c c c c c c c c c c


D) A corporation owns less-than a controlling interest in an unincorporated company
c c c c c c c c c c




Answer: D c


Difficulty: 1
c c


Easy
c


Topic: Organizational Structure and Financial Reporting c c c c


Learning Objective: 01-01 Understand and explain the reasons for and different methods of
c c c c c c c c c c c c


business expansion, the types of organizational structures, and the types of acquisitions.
c c c c c c c c c c c c


Bloom's: Remember c


AACSB: Reflective
c c


Thinking AICPA: FN
c c c


Decision Making
c c




During its inception, Devon Company purchased land for $100,000 and a building for
c c c c c c c c c c c c


$180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created
c c c c c c c c c c c c c c c c


subsidiary, Regan Company, in exchange for 15,000 shares of Regan's $10 par value
c c c c c c c c c c c c c


cstock.
Devon uses straight-line depreciation. Useful life for the building is 30 years, with zero
c c c c c c c c c c c c c


residual value. An appraisal revealed that the building has a fair value of $200,000.
c c c c c c c c c c c c c c




5) Based on the information provided, at the time of the transfer, Regan Company should record:
c c c c c c c c c c c c c c


A) Building at $180,000 and no accumulated depreciation.
c c c c c c


B) Building at $162,000 and no accumulated depreciation.
c c c c c c


C) Building at $200,000 and accumulated depreciation of $24,000.
c c c c c c c


D) Building at $180,000 and accumulated depreciation of $18,000.
c c c c c c c




Answer: D c


Difficulty: 2
c c


Medium
c


Topic: Valuation of Business Entities; Accounting for Internal Expansion: Creating c c c c c c c c


cBusinessEntities c


Learning Objective: 01-04 Understand and explain the differences between different
c ccc c c c c c c c


cforms of business combinations.; 01-03 Make calculations and prepare journal entries for
c c c c c c c c c c c


cthe creation of a business entity.
c c c c c


Bloom's: Understand
AACSB: Analytical
c

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