Test Bank for Advanced Financial Accounting 13th Edition By
m m m m m m m m m
Theodore Christensen-latest-2023
m
SOLUTIONS TEST BANK FOR
m m m
Advanced Financial Accounting 13th Edition By Theodore Christensen
m m m m m m m
Chapterm1 IntercorporatemAcquisitionsmandmInvestmentsminmOthermEntities
1) Assumingmnomimpairment minmvaluemprior mtomtransfer,massetsmtransferred mbymamparent mcompany
mtomanothermentitymit mhasmcreated mshould mbemrecorded mbymthemnewlymcreated mentitymat mthemassets':
A) cost mtomthemparent mcompany.
B) bookmvaluemonmthemparent mcompany'smbooksmat mthemdatemof mtransfer.
C) fairmvaluemat mthemdatemof mtransfer.
D) fairmvaluemof mconsiderationmexchanged mbymthemnewlymcreated mentity.
Answer:mBmDiffic
ulty:m1mEasy
Topic:m InternalmExpansion:mCreatingmamBusinessmEntity;mValuationmof mBusinessmEntitiesmLearn
ingmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthem
typesmof morganizationalmstructures,mand mthemtypesmof macquisitions.;m01-
03mMakemcalculationsmand mpreparemjournalmentriesmformthemcreationmof mambusinessmentity.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
2) Givenmthemincreased mdevelopment mof mcomplexmbusinessmstructures,mwhichmof mthemfollowi
ngmregulatorsmismresponsiblemformthemcontinued musefulnessmof maccountingmreports?
A) Securitiesmand mExchangemCommissionm(SEC)
B) PublicmCompanymAccountingmOversight mBoard m(PCAOB)
C) FinancialmAccountingmStandardsmBoard m(FASB)
D) Allmof mthemothermanswersmaremcorrect
Answer:mDmDiffic
ulty:m1mEasy
Topic:m m AnmIntroductionmtomComplexmBusinessmStructures
LearningmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthem
typesmof morganizationalmstructures,mand mthemtypesmof macquisitions.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m FNmReporting
3) A mbusinessmcombinationminmwhichmthemacquired mcompany'smassetsmand mliabilitiesmaremcombin
ed mwithmthosemof mthemacquiringmcompanymintomamsinglementitymismdefined mas:
,A) Stockmacquisition
B) Leveraged mbuyout
,C) StatutorymMerger
D) Reversemstatutorymrollup
, Answer:mCmDiffic
ulty:m1mEasy
Topic:m m OrganizationalmStructuremand mFinancialmReporting
LearningmObjective:m 01-
04mUnderstand mand mexplainmthemdifferencesmbetweenmdifferent mformsmof mbusinessmcombinations.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
4) Inmwhichmof mthemfollowingmsituationsmdomaccountingmstandardsmnot mrequiremthat mthemfinanc
ialmstatementsmof mthemparent mand msubsidiarymbemconsolidated?
A) A mcorporationmcreatesmamnew m100mpercent mowned msubsidiary
B) A mcorporationmpurchasesm90mpercent mof mthemvotingmstockmof manothermcompany
C) A mcorporationmhasmbothmcontrolmand m majoritymownershipmof manmunincorporated mcompany
D) A mcorporationmownsmless-thanmamcontrollingminterest minmanmunincorporated mcompany
Answer:mDmDiffic
ulty:m1mEasy
Topic:m m OrganizationalmStructuremand mFinancialmReporting
LearningmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthemt
ypesmof morganizationalmstructures,mand mthemtypesmof macquisitions.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
Duringmitsminception,mDevonmCompanympurchased mland mform$100,000mand mambuildingmform$180,00
0.mAftermexactlym3myears,mit mtransferred mthesemassetsmand mcashmof m$50,000mtomamnewlymcreated msubsi
diary,mReganmCompany,minmexchangemform15,000msharesmof mRegan'sm$10mparmvaluemstock.mDevonm
usesmstraight-
linemdepreciation.mUsefulmlifemformthembuildingmism30myears,mwithmzeromresidualmvalue.mAnmapprais
almrevealed mthat mthembuildingmhasmamfairmvaluemof m$200,000.
5) Based monmtheminformationmprovided,mat mthemtimemof mthemtransfer,mReganmCompanymshould m record:
A) Buildingmat m$180,000mand mnomaccumulated mdepreciation.
B) Buildingmat m$162,000mand mnomaccumulated mdepreciation.
C) Buildingmat m$200,000mand maccumulated mdepreciationmof m$24,000.
D) Buildingmat m$180,000mand maccumulated mdepreciationmof m$18,000.
Answer:mDmDifficult
y:m2mMedium
Topic:m Valuationmof mBusinessmEntities;mAccountingmformInternalmExpansion:mCreatingmBusines
smEntities
LearningmObjective:m 01-
04mUnderstand mand mexplainmthemdifferencesmbetweenmdifferent mformsmof mbusinessmcombinations.;m
01-03mMakemcalculationsmand mpreparemjournalmentriesmformthemcreationmof mambusiness mentity.
Bloom's:m Understand mAACS
B:m AnalyticalmThinkingmAICP
A:m FNmMeasurement
m m m m m m m m m
Theodore Christensen-latest-2023
m
SOLUTIONS TEST BANK FOR
m m m
Advanced Financial Accounting 13th Edition By Theodore Christensen
m m m m m m m
Chapterm1 IntercorporatemAcquisitionsmandmInvestmentsminmOthermEntities
1) Assumingmnomimpairment minmvaluemprior mtomtransfer,massetsmtransferred mbymamparent mcompany
mtomanothermentitymit mhasmcreated mshould mbemrecorded mbymthemnewlymcreated mentitymat mthemassets':
A) cost mtomthemparent mcompany.
B) bookmvaluemonmthemparent mcompany'smbooksmat mthemdatemof mtransfer.
C) fairmvaluemat mthemdatemof mtransfer.
D) fairmvaluemof mconsiderationmexchanged mbymthemnewlymcreated mentity.
Answer:mBmDiffic
ulty:m1mEasy
Topic:m InternalmExpansion:mCreatingmamBusinessmEntity;mValuationmof mBusinessmEntitiesmLearn
ingmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthem
typesmof morganizationalmstructures,mand mthemtypesmof macquisitions.;m01-
03mMakemcalculationsmand mpreparemjournalmentriesmformthemcreationmof mambusinessmentity.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
2) Givenmthemincreased mdevelopment mof mcomplexmbusinessmstructures,mwhichmof mthemfollowi
ngmregulatorsmismresponsiblemformthemcontinued musefulnessmof maccountingmreports?
A) Securitiesmand mExchangemCommissionm(SEC)
B) PublicmCompanymAccountingmOversight mBoard m(PCAOB)
C) FinancialmAccountingmStandardsmBoard m(FASB)
D) Allmof mthemothermanswersmaremcorrect
Answer:mDmDiffic
ulty:m1mEasy
Topic:m m AnmIntroductionmtomComplexmBusinessmStructures
LearningmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthem
typesmof morganizationalmstructures,mand mthemtypesmof macquisitions.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m FNmReporting
3) A mbusinessmcombinationminmwhichmthemacquired mcompany'smassetsmand mliabilitiesmaremcombin
ed mwithmthosemof mthemacquiringmcompanymintomamsinglementitymismdefined mas:
,A) Stockmacquisition
B) Leveraged mbuyout
,C) StatutorymMerger
D) Reversemstatutorymrollup
, Answer:mCmDiffic
ulty:m1mEasy
Topic:m m OrganizationalmStructuremand mFinancialmReporting
LearningmObjective:m 01-
04mUnderstand mand mexplainmthemdifferencesmbetweenmdifferent mformsmof mbusinessmcombinations.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
4) Inmwhichmof mthemfollowingmsituationsmdomaccountingmstandardsmnot mrequiremthat mthemfinanc
ialmstatementsmof mthemparent mand msubsidiarymbemconsolidated?
A) A mcorporationmcreatesmamnew m100mpercent mowned msubsidiary
B) A mcorporationmpurchasesm90mpercent mof mthemvotingmstockmof manothermcompany
C) A mcorporationmhasmbothmcontrolmand m majoritymownershipmof manmunincorporated mcompany
D) A mcorporationmownsmless-thanmamcontrollingminterest minmanmunincorporated mcompany
Answer:mDmDiffic
ulty:m1mEasy
Topic:m m OrganizationalmStructuremand mFinancialmReporting
LearningmObjective:m 01-
01mUnderstand mand mexplainmthemreasonsmformand mdifferent mmethodsmof mbusinessmexpansion,mthemt
ypesmof morganizationalmstructures,mand mthemtypesmof macquisitions.
Bloom's:m Rememberm AACS
B:m ReflectivemThinkingmAICP
A:m m FNmDecisionmMaking
Duringmitsminception,mDevonmCompanympurchased mland mform$100,000mand mambuildingmform$180,00
0.mAftermexactlym3myears,mit mtransferred mthesemassetsmand mcashmof m$50,000mtomamnewlymcreated msubsi
diary,mReganmCompany,minmexchangemform15,000msharesmof mRegan'sm$10mparmvaluemstock.mDevonm
usesmstraight-
linemdepreciation.mUsefulmlifemformthembuildingmism30myears,mwithmzeromresidualmvalue.mAnmapprais
almrevealed mthat mthembuildingmhasmamfairmvaluemof m$200,000.
5) Based monmtheminformationmprovided,mat mthemtimemof mthemtransfer,mReganmCompanymshould m record:
A) Buildingmat m$180,000mand mnomaccumulated mdepreciation.
B) Buildingmat m$162,000mand mnomaccumulated mdepreciation.
C) Buildingmat m$200,000mand maccumulated mdepreciationmof m$24,000.
D) Buildingmat m$180,000mand maccumulated mdepreciationmof m$18,000.
Answer:mDmDifficult
y:m2mMedium
Topic:m Valuationmof mBusinessmEntities;mAccountingmformInternalmExpansion:mCreatingmBusines
smEntities
LearningmObjective:m 01-
04mUnderstand mand mexplainmthemdifferencesmbetweenmdifferent mformsmof mbusinessmcombinations.;m
01-03mMakemcalculationsmand mpreparemjournalmentriesmformthemcreationmof mambusiness mentity.
Bloom's:m Understand mAACS
B:m AnalyticalmThinkingmAICP
A:m FNmMeasurement
