,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
m m m m m m m m m
File:mChapter m02 m-
m ConsolidationmofmFinancialmInformationmMultiplemChoic
e:
[QUESTION]
1. Atmthemdatemof man macquisition mwhich mismnotmambargain mpurchase, mthemacquisition mmethod
A) Consolidatesmthemsubsidiary’smassetsmatmfairmvaluemand mthemliabilitiesmatmbook mvalue.
B) Consolidatesmallmsubsidiary massetsmand mliabilitiesmatmbook mvalue.
C) Consolidatesmallmsubsidiary massetsmand mliabilitiesmatmfairmvalue.
D) Consolidatesmcurrentmassetsmand mliabilitiesmatmbook mvalue,mand mlong-
termmassetsmand mliabilitiesmatmfairmvalue.
E) Consolidatesmthemsubsidiary’smassetsmatmbook mvaluemandmthemliabilitiesmatmfairmval
ue.mAnswer:mC
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciplesmTo
pic:mAcquisition―Allocate mfairmvaluemDiffic
ulty:m1 mEasy
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
2. In man macquisition mwherem100% mcontrolmismacquired,mhowmwouldmthemlandmaccountsmofmthempa
rentmand mthemland maccountsmofmthemsubsidiarymbemreportedmonmconsolidated mfinancialmstatements
?
Parent Subsidiary
A) Book mValue Book mValue
B) Book mValue FairmValue
C) FairmValue FairmValue
D) FairmValue Book mValue
E) Cost Cost
Answer:mB
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciplesmTo
pic:mAcquisition―Allocate mfairmvaluemDiffic
ulty:m2 mMedium
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-1
mynursytest.store
,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
m m m m m m m m m
[QUESTION]
3. LisamCo.mpaidmcash mformallmofmthemvotingmcommonmstockmofmVictoriamCorp.m Victoriamwillmconti
nuemto mexistmasmamseparatemcorporation.mEntriesmformthemconsolidationmofmLisamandmVictoriamwoul
d mbemrecorded min
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-2
mynursytest.store
, DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
m m m m m m m m m
A) Amworksheet.
B) Lisa'smgeneralmjournal.
C) Victoria'smgeneralmjournal.
D) Victoria'smsecretmconsolidation mjournal.
E) Themgeneralmjournalsmofmboth mcompanie
s.mAnswer:mA
LearningmObjective:m02-
07 mTopic:mConsolidation mworksh
eetmDifficulty:m1 mEasy
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
4. Usingmthemacquisitionmmethodmformambusinessmcombination,mgoodwillmismgenerallymcalculated
masmthe:
A) Costmof mtheminvestmentmlessmthemsubsidiary'smbook mvaluematmthembeginningmof mthemyear.
B) Costmof mtheminvestmentmlessmthemsubsidiary'smbook mvaluematmthemacquisition mdate.
C) Costmof mtheminvestmentmlessmthemsubsidiary'smfairmvalue matmthembeginningmof mthemyear.
D) Costmof mtheminvestmentmlessmthemsubsidiary'smfairmvalue matmacquisition mdate.
E) Zero,mitmismno mlongermallowedmundermfederalmla
w.mAnswer:mD
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciples
Topic:mAcquisition―Calculate mgoodwillmormbargain
Difficulty:m2 mMediummBloo
ms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
5. Directmcombinationmcostsmandmamountsmincurredmtomregistermand missuemstockminmconnection mwit
h mambusinessmcombination. m Howmshould mthosemcostsmbemaccounted mformin mampre-
2009 mbusinessmcombination?
DirectmCombination mCosts Stock mIssuance m Costs
A) Increase m Investment Decrease m Investment
B) Increase m Investment Decrease mAdditionalmPaid-inmCapital
C) Increase m Investment Increase m Expenses
D) Decrease mAdditionalmPaid-inmCapital Increase m Investment
E) Increase m Expenses Decrease m Investment
Answer:mB
LearningmObjective:m02-09
Topic:mLegacy mmethods―Purchase mand mpooling
Difficulty:m2 mMediummBloo
ms:mRemember
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-3
mynursytest.store
m m m m m m m m m
File:mChapter m02 m-
m ConsolidationmofmFinancialmInformationmMultiplemChoic
e:
[QUESTION]
1. Atmthemdatemof man macquisition mwhich mismnotmambargain mpurchase, mthemacquisition mmethod
A) Consolidatesmthemsubsidiary’smassetsmatmfairmvaluemand mthemliabilitiesmatmbook mvalue.
B) Consolidatesmallmsubsidiary massetsmand mliabilitiesmatmbook mvalue.
C) Consolidatesmallmsubsidiary massetsmand mliabilitiesmatmfairmvalue.
D) Consolidatesmcurrentmassetsmand mliabilitiesmatmbook mvalue,mand mlong-
termmassetsmand mliabilitiesmatmfairmvalue.
E) Consolidatesmthemsubsidiary’smassetsmatmbook mvaluemandmthemliabilitiesmatmfairmval
ue.mAnswer:mC
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciplesmTo
pic:mAcquisition―Allocate mfairmvaluemDiffic
ulty:m1 mEasy
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
2. In man macquisition mwherem100% mcontrolmismacquired,mhowmwouldmthemlandmaccountsmofmthempa
rentmand mthemland maccountsmofmthemsubsidiarymbemreportedmonmconsolidated mfinancialmstatements
?
Parent Subsidiary
A) Book mValue Book mValue
B) Book mValue FairmValue
C) FairmValue FairmValue
D) FairmValue Book mValue
E) Cost Cost
Answer:mB
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciplesmTo
pic:mAcquisition―Allocate mfairmvaluemDiffic
ulty:m2 mMedium
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-1
mynursytest.store
,DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
m m m m m m m m m
[QUESTION]
3. LisamCo.mpaidmcash mformallmofmthemvotingmcommonmstockmofmVictoriamCorp.m Victoriamwillmconti
nuemto mexistmasmamseparatemcorporation.mEntriesmformthemconsolidationmofmLisamandmVictoriamwoul
d mbemrecorded min
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-2
mynursytest.store
, DOWNLOAD THE Test Bank for Advanced Accounting 13th Edition Hoyle
m m m m m m m m m
A) Amworksheet.
B) Lisa'smgeneralmjournal.
C) Victoria'smgeneralmjournal.
D) Victoria'smsecretmconsolidation mjournal.
E) Themgeneralmjournalsmofmboth mcompanie
s.mAnswer:mA
LearningmObjective:m02-
07 mTopic:mConsolidation mworksh
eetmDifficulty:m1 mEasy
Blooms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
4. Usingmthemacquisitionmmethodmformambusinessmcombination,mgoodwillmismgenerallymcalculated
masmthe:
A) Costmof mtheminvestmentmlessmthemsubsidiary'smbook mvaluematmthembeginningmof mthemyear.
B) Costmof mtheminvestmentmlessmthemsubsidiary'smbook mvaluematmthemacquisition mdate.
C) Costmof mtheminvestmentmlessmthemsubsidiary'smfairmvalue matmthembeginningmof mthemyear.
D) Costmof mtheminvestmentmlessmthemsubsidiary'smfairmvalue matmacquisition mdate.
E) Zero,mitmismno mlongermallowedmundermfederalmla
w.mAnswer:mD
LearningmObjective:m02-04
LearningmObjective:m02-05
Topic:mAcquisition―Valuation mprinciples
Topic:mAcquisition―Calculate mgoodwillmormbargain
Difficulty:m2 mMediummBloo
ms:mRemember
AACSB:mReflectivemThinkin
gmAICPA:mBBmCriticalmThinki
ngmAICPA:mFNmMeasuremen
t
[QUESTION]
5. Directmcombinationmcostsmandmamountsmincurredmtomregistermand missuemstockminmconnection mwit
h mambusinessmcombination. m Howmshould mthosemcostsmbemaccounted mformin mampre-
2009 mbusinessmcombination?
DirectmCombination mCosts Stock mIssuance m Costs
A) Increase m Investment Decrease m Investment
B) Increase m Investment Decrease mAdditionalmPaid-inmCapital
C) Increase m Investment Increase m Expenses
D) Decrease mAdditionalmPaid-inmCapital Increase m Investment
E) Increase m Expenses Decrease m Investment
Answer:mB
LearningmObjective:m02-09
Topic:mLegacy mmethods―Purchase mand mpooling
Difficulty:m2 mMediummBloo
ms:mRemember
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
Pagem2-3
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