Accounting for Mergers and Acquisitions
Mock Exam
Course Introduction
Accounting for Mergers and Acquisitions explores the financial reporting and analysis considerations unique to business combinations. This course covers the key accounting principles and standards, such as purchase method versus pooling of interests, goodwill recognition, fair value measurement, and the consolidation of financial statements. Students learn how to evaluate the impact of mergers and acquisitions on company balance sheets, income statements, and cash flow, while also considering regulatory, tax, and strategic implications. Case studies and real-world examples are used to illustrate the practical challenges faced by accountants and financial managers during the M&A process.
Recommended Textbook
Advanced Accounting 12th Edition by Paul M. Fischer
Available Study Resources on Quizplus
24 Chapters
1159 Verified Questions
1159 Flashcards
Source URL: https://quizplus.com/study-set/3584 Page 2
Chapter 1: Business Combinations: New Rules for a
Long-Standing Business Practice
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/71172
Sample Questions
Q1) A building materials company's acquisition of a television station would be an example of a:
A)market extension merger.
B)conglomerate merger.
C)product extension merger.
D)horizontal merger.
Answer: B
Q2) When measuring the fair value of the acquired company as the price paid by the acquirer, the price calculation needs to consider the following EXCEPT for:
A)the estimated value of contingent consideration like assets or stock at a later date if specified events occur like targeted sales or income performance
B)the costs of accomplishing the acquisition, such as accounting and legal fees
C)common agreements like targeted sales or income performance by the acquire company are acceptable for valuation
D)issue costs from the stock of the acquirer may be expensed or they can be deducted from the value assigned to paid-in capital in excess of par only
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Consolidated Statements: Date of Acquisition
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71171
Sample Questions
Q1) A subsidiary was acquired for cash in a business combination on December 31, 2016.The purchase price exceeded the fair value of identifiable net assets.The acquired company owned equipment with a fair value in excess of the book value as of the date of the combination.A consolidated balance sheet prepared on December 31, 2016, would A)report the excess of the fair value over the book value of the equipment as part of goodwill.
B)report the excess of the fair value over the book value of the equipment as part of the plant and equipment account.
C)reduce retained earnings for the excess of the fair value of the equipment over its book value.
D)make no adjustment for the excess of the fair value of the equipment over book value.Instead, it is an adjustment to expense over the life of the equipment.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Consolidated Statements: Subsequent to Acquisition
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/71170
Sample Questions
Q1) In consolidated financial statements, it is expected that:
A)Dividends declared equals the sum of the total parent company's declared dividends and the total subsidiary's declared dividends.
B)Retained Earnings equals the sum of the controlling interest's separate retained earnings and the non-controlling interest's separate retained earnings.
C)Common Stock equals the sum of the parent company's outstanding shares and the subsidiary's outstanding shares.
D)Consolidated Net Income equals the sum of the income distributed to the controlling interest and the income distributed to the non-controlling interest.
Answer: D
Q2) Under IASB for small and medium entities, goodwill:
A)is subject to impairment procedures.
B)is never adjusted.
C)is amortized over ten years.
D)is not recorded in an acquisition.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Intercompany Transactions: Merchandise, Plant
Assets, and Notes
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/71169
Sample Questions
Q1) Diller owns 80% of Lake Company common stock.During October 2016, Lake sold merchandise to Diller for $300,000.On December 31, 2016, one-half of this merchandise remained in Diller's inventory.For 2016, gross profit percentages were 30% for Diller and 40% for Lake.The amount of unrealized profit in the ending inventory on December 31, 2016 that should be eliminated in consolidation is ____.
A)$80,000
B)$60,000
C)$32,000
D)$30,000
Q2) Emron Company owns a 100% interest in the common stock of the Dietz Company.On January 1, 2017, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period.The asset was sold at a $5,000 profit.In the consolidated statements, this profit will
A)not be recorded.
B)be recognized over 5 years.
C)be recognized in the year of sale.
D)be recognized when the asset is resold to outside parties at the end of its period of use.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Intercompany Transactions: Bonds and Leases
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/71168
Sample Questions
Q1) Powell Company owns an 80% interest in Sauter, Inc.On January 1, 2016, Sauter issued $400,000 of 10-year, 12% bonds at a premium of $50,000.On December 31, 2021, 5 years after original issuance, Powell purchased all of the outstanding bonds for $390,000.Both firms use the straight-line method of amortization.
The interest adjustment in the 2021 subsidiary income distribution schedule is ____.
A)$2,000
B)$5,000
C)$4,500
D)$0
Q2) Which of the following statements is true?
A)No elimination entries are required on a worksheet as a result of operating, direct-financing, and sales-type leases.
B)No elimination entries are required on a worksheet as a result of direct-financing and sales-type leases.
C)No elimination entries are required on a worksheet as a result of operating leases.
D)All the preceding are false.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Cash Flow, Eps, and Taxation
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/71167
Sample Questions
Q1) For ownership interest of at least 20% but less than 80%, the parent may exclude how much of the dividends received from its reported income when filing separately?
A)100%
B)80%
C)70%
D)20%
Q2) Dividends paid by a subsidiary have the following effect on the consolidated cash flow
A)all dividends to the parent and to non-controlling stockholders appear on the statement.
B)only dividends to the parent appear on the statement.
C)only dividends to NCI appear on the statement.
D)neither dividends to the parent or to non-controlling stockholders appear on the statement
Q3) Consolidated firms that meet the tax law requirements to be an affiliated group
A)must file a consolidated return.
B)must receive permission of the Internal Revenue Service to file separately.
C)may elect to file as a single entity or as a consolidated group.
D)cannot change the method of filing in the future.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Special Issues in Accounting for an Investment
in a Subsidiary
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/71166
Sample Questions
Q1) Pine Company purchased a 60% interest in the Scent Company on January 1, 2016 for $360,000.On that date, the stockholders' equity of Scent Company was $450,000.Any excess cost on 1/1/16 was attributable to goodwill.Pine purchased another 20% interest on January 1, 2019 for $200,000.On January 1, 2019, Scent Company's stockholders' equity was $700,000, the entire increase due to retained earnings.As part of the consolidation process, the excess of the price paid over book on the new block of shares is treated as A)additional goodwill
B)a loss on acquisition of additional subsidiary shares
C)an increase to Pine's Investment in Scent account
D)a reduction in parent's paid-in capital in excess of par
Q2) When selling an investment in a subsidiary, in order to record the appropriate gain or loss:
A)the investment must be adjusted to show the balance under the sophisticated equity method.
B)the investment must be adjusted to show the balance under the equity method.
C)a final consolidation must be prepared.
D)the unamortized balances of the excess of the purchase price over the book value of the investment must be written off.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Subsidiary Equity Transactions, Indirect
Subsidiary Ownership, and Subsidiary Ownership of Parent Shares
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71165
Sample Questions
Q1) Able Company owns an 80% interest in Barns Company and a 20% interest in Carns Company.Barns owns a 40% interest in Carns Company.
A)Carn will not be included in the consolidation process
B)Carn will be included in the consolidation process; 20% of prior period amortizations will be distributed to Retained Earnings-Carns
C)Carn will be included in the consolidation process; 40% of prior period amortizations will be distributed to Retained Earnings-Carns
D)Carn will be included in the consolidation process; NCI will be allocated 6.4% of prior-period profits originated by Carns
Q2) Which of the following situations is viewed as the parent having treasury stock?
A)A owns 80% of B, and B owns 70% of C.
B)A owns 80% of B and 20% of C; B owns 70% of C.
C)A owns 80% of B, and B owns 20% of A.
D)None of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: The International Accounting Environment
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/71164
Sample Questions
Q1) Explain the factors which have led to the differences in accounting standards among nations.
Q2) A U.S.company purchases medical lab equipment from a Japanese company.The Japanese company requires payment in Japanese yen.In this transaction, the yen would be referred to as the ___________ currency.
A)measurement
B)denominated
C)purchasing
D)selling
Q3) Describe the concept of convergence as it pertains to the FASB and IASB and describe the ways in which this may be accomplished.
Q4) Which of the following factors has not influenced the development of accounting practices in various nations?
A)the political environment
B)economic development
C)cultural background
D)all of these factors have influenced the development of accounting practices
Q5) Describe the complexities stemming from U.S.-based companies operating in an international environment.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Foreign Currency Transactions
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/71163
Sample Questions
Q1) Foreign currency transactions not involving a hedge should be accounted for using A)the one-transaction method.
B)the two-transaction method.
C)a hybrid of the one- and two-transaction methods.
D)either the one- or the two-transaction method (allowed by the FASB).
Q2) A U.S.company that has sold its product to a German firm would be exposed to a net exchange gain on the unpaid receivable if the
A)amount to be paid was denominated in dollars.
B)dollar weakened relative to the Euro and the Euro was the denominated currency.
C)dollar strengthened relative to the Euro and the Euro was the denominated currency.
D)U.S.company purchased a forward contract to buy Euros.
Q3) To qualify for fair value hedge accounting, a company must document all but:
A)its hedging objectives and strategy.
B)how hedge effectiveness will be assessed.
C)the nature of the risk being hedged.
D)the amount of the gain or loss in other comprehensive income.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Translation of Foreign Financial Statements
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/71162
Sample Questions
Q1) On January 1, 2016, Rapid Corporation purchased 25% of a foreign firm when its stockholders' equity section totaled 240,000 FCs.Rapid Corporation paid 75,000 FCs, with the excess over book value being attributed to equipment with a 5-year useful life.The foreign firm reported net income of 80,000 FCs for 2016.Relevant exchange rates were as follows:
?
?
\(\begin{array}{lr}
\text { Date } & 1 \text { FC equal to } \\
\text { January } 1,2016 & \$ 0.30 \\
\text { December 31,2016 } & \$ 0.35 \\
\text { Average 2016 } & \$ 0.33 \end{array}\)
Required: ?
Prepare the journal entries necessary to record the events concerning Rapid's investment in the foreign firm.
Q2) List the two primary objectives of translating foreign financial statements according to the FASB #52, which emphasizes the concept of the functional currency.?
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Interim Reporting and Disclosures About
Segments of an Enterprise
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/71161
Sample Questions
Q1) Which of the following items should be disclosed with interim data?
A)basic and diluted earnings per share
B)contingent items
C)changes in accounting estimates
D)all of the above
Q2) Abbott Inc.began the year with 750 units of inventory valued at $20 each under LIFO.During the first quarter, 300 units were purchased at $25 each and another 250 units were purchased at $28 each.Assume that 200 units are on hand at the end of the first quarter and that the current replacement cost is $30 per unit.
? Required: ? If Abbott plans to have 500 units on hand at year end, determine the cost of goods sold for the first quarter.
Q3) Discuss the criteria emphasized in the "management approach" that is used to define operating segments.
Q4) In addition to disclosures about reportable segments, companies are required to provide enterprise-wide disclosures.Describe the information included in enterprise-wide disclosures.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Partnerships: Characteristics, Formation, and
Accounting for Activities
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71160
Sample Questions
Q1) When speci c assets are contributed by a partner, they lose their identity as to source and become:
A)Unidentified
B)Shared property
C)Ownership of the contributing partner
D)None of the above
Q2) J & K are forming a partnership.J is investing a building that has a market value of $80,000.However, the building carries a $45,000 mortgage that will be assumed by the partnership.K is investing $20,000 cash.The balance of J's capital is
A)$25,000
B)$35,000
C)$45,000
D)$125,000
Q3) The characteristic of a partnership in which partners exercise good faith, loyalty, and sound judgement best describes:
A)Mutual agency
B)Mutual distinction
C)Fiduciary relationship
D)Financial Relationship
15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Partnerships: Ownership Changes and Liquidations
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/71173
Sample Questions
Q1) When an existing partner sells interest in the partnership and Goodwill is recognized, what is the likely entry made:
A)Debit Expense
B)Debit selling partners' Drawing
C)Debit Capital
D)Debit cash
Q2) When the new partner invests some intangible asset, such as business acumen or an established clientele, it is possible to have a bonus credited to the new partner.This bonus may be viewed as:
A)Cost incurred to acquire Goodwill of new partner
B)Revenue recognition
C)Personal Drawing in excess of Goodwill
D)Additional investment by all partners.
Q3) Describe the order in which assets must be distributed upon liquidation of a partnership
Q4) Compare and contrast the Bonus method and Goodwill method of in admitting a new partner to a partnership
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Government and Not for Profit Accounting
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71159
Sample Questions
Q1) Tax anticipation notes are an example of
A)Deferred assets
B)Deferred liability
C)Accrued assets
D)Short-term operating debt.
Q2) Record the following journal entries: ?
Encumbrance of $1,000,000 ARE MADE
Vouchers are approved liquidating $900,000 of encumbrances as follows:
Supplies ..$305,000
Building .$575,000
Other Expense $35,000
Q3) Government and not-for-pro t organizations comprise approximately what percent of the US expenditures
A)One Fourth
B)One Third
C)One Fifth
D)One Eighth
Q4) Identify the three fund types used in government accounting and their relevance:
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Governmental Accounting: Other
Governmental Funds, Proprietary Funds, and Fiduciary Funds
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/71158
Sample Questions
Q1) A Nonexpendable Trust Fund was established to help pay for Little League baseball.A total of $100,000 was donated to Babe City.The earnings, not the principal, from the donation could be used to fund baseball.
Required:
Make the entries and identify the fund into which the following transactions should be made:
a.The donation is received and invested immediately in a mutual stock fund.
b.Cash dividends of $8,500 were received from the mutual fund and made available for spending.
c.During the first baseball season, $8,300 was spent from the fund.
d.The closing entries were made.
Q2) What is escheat property and how do we account for it?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Q3) What reporting is required for the accounting for employee Pension Trust Funds.
Chapter 17: Financial Reporting Issues
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/71157
Sample Questions
Q1) The Single Audit Act requires that a governmental unit have a single audit if they
A)receive any Federal Funds even on a pass-through basis.
B)are not in compliance with the Federal grant conditions.
C)receive more than $300,000 in Federal funds annually.
D)only receive one Federal grant.
Q2) Which of the following is not a purpose of the financial audit that accompanies statements?
A)ensuring compliance with fiscal requirements
B)render an opinion about whether the statements present fairly the financial position, results of operation, and cash flows of the government
C)to comment on the economy, efficiency or program results of a governmental unit
D)statements have been prepared in accordance with GAAP, GASB, and state, municipal, and federal laws
Q3) The Management Discussion and Analysis gives a detailed overview of pension cost calculations for governmental units.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Accounting for Private Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/71156
Sample Questions
Q1) A CPA donates her services to prepare the annual financial report for a voluntary health and welfare organization.The services should be recorded as:
A)revenues-unrestricted.
B)accounting expenses.
C)a footnote disclosure in the financial report.
D)both a and b are correct.
Q2) What are the two major categories of resources obtained by voluntary health and welfare organizations, and how do they differ?
Q3) A voluntary welfare organization is permitted to use building facilities rent free.This should be recorded as:
A)a footnote in the financial statements disclosing the rent-free arrangement.
B)a contribution.
C)rent expense at the fair market value.
D)both b and c are correct.
Q4) A temporary restriction expires when:
A)the stipulated time has elapsed.
B)the stipulated purpose has been fulfilled.
C)the useful life of donated assets has ended.
D)All of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Accounting for Not-For-Profit Colleges and Universities and Health Care Organizations
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/71155
Sample Questions
Q1) Which of the following receipts should be recorded in the current restricted fund of a public university?
A)endowment income the Board of Trustees has decided to designate for faculty travel.
B)a cash donation to provide loans to students
C)a cash donation designated by the donor to provide scholarships
D)a term endowment
Q2) Under capitation agreements, hospitals:
A)receive payments to reimburse them for costs incurred in treating patients.
B)receive fees based upon diagnoses.
C)receive a monthly premium based upon the number of participants in an HMO.
D)agree to take a percentage of the usual charge.
Q3) The financial statements required for private not-for-profit health care organizations are the statement of activities, the statement of financial position and the statement of cash flows.
A)True
B)False
Q4) How has the adoption of GASB Statement No.35 changed the reporting standards for colleges and universities.
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Estates and Trusts: Their Nature and the
Accountants Role
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/71154
Sample Questions
Q1) Which of the following statements is true concerning the handling of discounts and premiums for bonds that are part of an estate at the time of death?
A)Straight-line amortization is normally used to amortize discounts and premiums.
B)Effective amortization is the preferred method.
C)Either straight-line or effective amortization can be used.
D)Discounts and premiums are not amortized.
Q2) The gross estate reflects the original purchase value of all property in which the decedent had an interest at the date of death, regardless of the nature of the property or to whom it passes.
A)True
B)False
Q3) Which of the following is not true about the unified credit that accompanies the unified transfer tax?
A)It is a lifetime credit.
B)If a portion is used to reduce gift taxes, less credit is available to reduce potential estate taxes.
C)Gives the spouses make to each other reduces the amount of available credit.
D)The current lifetime credit is $345,800.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Debt Restructuring, Corporate Reorganizations, and Liquidations
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/71153
Sample Questions
Q1) On January 1, 2015, Duke Company negotiated an agreement to modify the terms of a $500,000 note with $38,000 of accrued interest.Payments of $35,000 including interest will be made each quarter end up to and including June 30, 2019.Which of the following is true about this troubled debt restructuring?
A)Interest expense will be recognized as it is incurred.
B)A gain of $88,000 will be recognized.
C)The present value of the payments must be calculated to determine if there is a gain or loss.
D)None of the above is true.
Q2) Which of the following is an illustration of an action that can be taken to help a troubled firm without using the court system?
A)asset transfers to settle debt
B)equity interest granted in exchange for debt
C)modifications of interest rates more favorable to the firm
D)All or a combination can be used.
Q3) Describe the duties of the trustee in a Chapter 7 liquidation.
Q4) Describe the options that are available to a corporation that is unable to service its debts on a timely basis but that does NOT require court action.
Page 23
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Derivatives and Related Accounting Issues
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/71152
Sample Questions
Q1) Which of the following is not true regarding using an option to hedge financial risks versus a forward contract?
A)An option is a right to buy or sell an underlying, while a forward contract is an obligation.
B)An option requires an initial cash outlay, while a forward contract does not.
C)Both options and forwards are said to have asymmetric or one-sides return profiles.
D)All of the above are true.
Q2) A hedge to avoid the potential unfavorable effects of changing prices associated with all of the following would qualify for special fair value hedge accounting except:
A)debt instruments held in a trading portfolio.
B)equity and debt instruments held in an available-for-sale portfolio.
C)a firm commitment to acquire crude oil.
D)a farmer's inventory of hogs.
Q3) Explain how a derivative instrument may be used to reduce or avoid the exposure to risk associated with other transactions.
Q4) Identify the various types of information that should be included in disclosures regarding derivative instruments and hedging.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 23: Equity Method for Unconsolidated Investments
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71151
Sample Questions
Q1) The market value of an investment is not a required disclosure for equity method investors.
A)True
B)False
Q2) Company P owns a 30% interest in Company S and accounts for the investment under the sophisticated equity method.The investment was purchased at underlying book value, and there is no excess of cost or book value.Company S sells merchandise to Company P at cost plus 25%.Intercompany sales during 20X1 were $100,000.There were $20,000 worth of such goods in Company P's beginning inventory and $30,000 worth of such goods in Company P's ending inventory.Company S's reported income for 20X1 is $40,000, and no dividends were paid.What amount will Company P record as investment income in 20X1?
A)$12,000
B)$11,400
C)$9,750
D)$4,500
Q3) Land is depreciated typically on a ten-year life.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: Variable Interest Entities
Available Study Resources on Quizplus for this Chatper
10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/71150
Sample Questions
Q1) The primary beneficiary does not consolidate its interest in a VIE into their consolidated financial statements.
A)True
B)False
Q2) The primary bene ciary has control of the variable interest entity (VIE) based on its power to control the activities of the VIE and the obligation to absorb losses and receive bene ts from the VIE.
A)True
B)False
Q3) The accounts of the VIE are adjusted to fair value on the date control is achieved. A)True B)False
Q4) The entity having control of a VIE is referred to as the parent company. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26