Advanced accounting final - Study guides, Class notes & Summaries

Statements prepared for the parent company and its subsidiaries: - ANSWERSConsolidated Statements The excess of the value implied by the purchase price over the fair value of the subsidiary's identifiable net assets: - ANSWERSGoodwill A parent owns at least 50% of a subsidiary: - ANSWERSMajority Owned An entry made to remove P's investment account and P's share of S's equity accounts: - ANSWERSElimination The portion of equity in S not owned by P: - ANSWERSNoncontrolling Interest...

For a hedge transaction, if the spot rate is greater than the forward rate, the foreign currency is selling at a premium in the forward market - ANSWERSFalse If the direct foreign exchange rate of the dollar versus the British Pound is E1.5, the indirect exchange rate is E.6667. - ANSWERSTrue The intrinsic value of a derivative is related to the value assigned to the opportunity to hold the derivative open for a period of time. - ANSWERSFalse According to the two-transaction approach, t...

What is a basic premise of the acquisition method regarding accounting for a noncontrolling interest? - ANSWERSA subsidiary is an indivisible part of a business combination and should be included in its entirety regardless of the degree of ownership. The noncontrolling interest represents an outside ownership in a subsidiary that is not attributable to the parent company. Where in the consolidated balance sheet is this outside ownership interest recognized? - ANSWERSIn the owners' equity sec...

There are no _______ is a partnership. - ANSWERSowners. - owners = shareholders. Partnerships are owned by individuals and don't have: - ANSWERSstock to issue. Partnerships focus on: - ANSWERSequity or CAPITAL. - there is technically not any equity in a partnership. - capital = ownership of the partners. Why Partnership? - ANSWERS- a partnership is very easy to start-- as simple as a verbal agreement. - freedom of operation-- no structured rules on compensation, profit-sharing,...

Proprietary funds are A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations C. Funds used to account for monies held by the government in a trustee capacity D. Funds used to account for all financial resources except those required to be accounted for in another fund E. ...

Proprietary funds are A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens B. Funds us ed to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations C. Funds used to account for monies held by the government in a trustee capacity D. Funds used to account for all financial resources except those required to be accounted for in another fund E...

Advanced Accounting First Semester Final Exam 2024/2025 TEST BANK Questions With Completed & Verified Solutions.

The terms on an invoice are 4/15, n/30. This means that a discount of 4% will be allowed if payment is made within 15 days from the date of the invoice. a discount of 15% will be allowed if payment is made with 4 days from the date of the invoice. a discount of 4% will be allowed if payment is made by the 15th of the month. a discount of 15% will be allowed if payment is made by the 4th day after the date of the invoice. - ANSWERSa discount of 4% will be allowed if payment is made within 15 ...

There are no _______ is a partnership. - ANSWERSowners. - owners = shareholders. Partnerships are owned by individuals and don't have: - ANSWERSstock to issue. Partnerships focus on: - ANSWERSequity or CAPITAL. - there is technically not any equity in a partnership. - capital = ownership of the partners. Why Partnership? - ANSWERS- a partnership is very easy to start-- as simple as a verbal agreement. - freedom of operation-- no structured rules on compensation, profit-sharing,...

Major funds - ANSWERSGeneral, Proprietary, Fidiciary Alice makes cash gift with no strings to political party - ANSWERSRevenue, unrestricted contribution Which of the following are fiduciary - ANSWERSPensions, Agency Which organization has jurisdiction for private university - ANSWERSFASB Revenue from property tax are recorded when - ANSWERSMeasurable and available Expenditures are what - ANSWERSDecreases in financial resources Following is a type of proprietary fund - ANSWERSE...