,11/27/2017 Advanced Accounting12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik Test Bank - Test Bank Help
SAMPLE
File: Chapter 03 – Consolidations – Subsequent to the Date of Acquisition
Multiple Choice:
[QUESTION]
1. Which one of the following accounts would not appear in the consolidated financial statements at the
end of the first fiscal period of the combination?
A) Goodwill.
B) Equipment.
C) Investment in Subsidiary.
D) Common Stock.
E) Additional Paid-In Capital.
Answer: C
Learning Objective: 03-01
Di iculty: Medium
Bloom’s: Understand
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
2. Which of the following internal record-keeping methods can a parent choose to account for a
subsidiary acquired in a business combination?
A) initial value or book value.
B) initial value, lower-of-cost-or-market-value, or equity.
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 3/158
,11/27/2017 Advanced Accounting12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik Test Bank - Test Bank Help
C) initial value, equity, or partial equity.
D) initial value, equity, or book value.
E) initial value, lower-of-cost-or-market-value, or partial equity.
Answer: C
Learning Objective: 03-02
Di iculty: Easy
Bloom’s: Remember
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
3. Which one of the following varies between the equity, initial value, and partial equity methods of
accounting for an investment?
A) the amount of consolidated net income.
B) total assets on the consolidated balance sheet.
C) total liabilities on the consolidated balance sheet.
D) the balance in the investment account on the parent’s books.
E) the amount of consolidated cost of goods sold.
Answer: D
Learning Objective: 03-04
Di iculty: Medium
Bloom’s: Understand
AACSB: Reflective thinking
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 4/158
, 11/27/2017 Advanced Accounting12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik Test Bank - Test Bank Help
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
4. Under the partial equity method, the parent recognizes income when
A) dividends are received from the investee.
B) dividends are declared by the investee.
C) the related expense has been incurred.
D) the related contract is signed by the subsidiary.
E) it is earned by the subsidiary.
Answer: E
Learning Objective: 03-02
Di iculty: Easy
Bloom’s: Remember
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
5. Push-down accounting is concerned with the
A) impact of the purchase on the subsidiary’s financial statements.
B) recognition of goodwill by the parent.
C) correct consolidation of the financial statements.
D) impact of the purchase on the separate financial statements of the parent.
E) recognition of dividends received from the subsidiary.
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 5/158
SAMPLE
File: Chapter 03 – Consolidations – Subsequent to the Date of Acquisition
Multiple Choice:
[QUESTION]
1. Which one of the following accounts would not appear in the consolidated financial statements at the
end of the first fiscal period of the combination?
A) Goodwill.
B) Equipment.
C) Investment in Subsidiary.
D) Common Stock.
E) Additional Paid-In Capital.
Answer: C
Learning Objective: 03-01
Di iculty: Medium
Bloom’s: Understand
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
2. Which of the following internal record-keeping methods can a parent choose to account for a
subsidiary acquired in a business combination?
A) initial value or book value.
B) initial value, lower-of-cost-or-market-value, or equity.
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 3/158
,11/27/2017 Advanced Accounting12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik Test Bank - Test Bank Help
C) initial value, equity, or partial equity.
D) initial value, equity, or book value.
E) initial value, lower-of-cost-or-market-value, or partial equity.
Answer: C
Learning Objective: 03-02
Di iculty: Easy
Bloom’s: Remember
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
3. Which one of the following varies between the equity, initial value, and partial equity methods of
accounting for an investment?
A) the amount of consolidated net income.
B) total assets on the consolidated balance sheet.
C) total liabilities on the consolidated balance sheet.
D) the balance in the investment account on the parent’s books.
E) the amount of consolidated cost of goods sold.
Answer: D
Learning Objective: 03-04
Di iculty: Medium
Bloom’s: Understand
AACSB: Reflective thinking
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 4/158
, 11/27/2017 Advanced Accounting12th Edition by Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik Test Bank - Test Bank Help
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
4. Under the partial equity method, the parent recognizes income when
A) dividends are received from the investee.
B) dividends are declared by the investee.
C) the related expense has been incurred.
D) the related contract is signed by the subsidiary.
E) it is earned by the subsidiary.
Answer: E
Learning Objective: 03-02
Di iculty: Easy
Bloom’s: Remember
AACSB: Reflective thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
[QUESTION]
5. Push-down accounting is concerned with the
A) impact of the purchase on the subsidiary’s financial statements.
B) recognition of goodwill by the parent.
C) correct consolidation of the financial statements.
D) impact of the purchase on the separate financial statements of the parent.
E) recognition of dividends received from the subsidiary.
https://testbankhelp.com/product/advanced-accounting12th-edition-joe-ben-hoyle-thomas-schaefer-timothy-doupnik-test-bank/ 5/158
