Advanced Accounting Practice Questions
Course Introduction
Advanced Accounting delves into complex principles and practices essential for the preparation and analysis of consolidated financial statements, mergers and acquisitions, foreign currency transactions, partnership accounting, and governmental and not-for-profit accounting. The course emphasizes theoretical frameworks alongside real-world applications, providing students with the skills needed to interpret and resolve intricate accounting issues. By engaging with contemporary case studies and regulatory guidelines, students will develop a critical understanding of ethical considerations, reporting requirements, and financial disclosures relevant to multi-entity organizations and international operations.
Recommended Textbook
Advanced Accounting 13th Edition by Floyd
A. Beams
Available Study Resources on Quizplus
23 Chapters
1150 Verified Questions
1150 Flashcards
Source URL: https://quizplus.com/study-set/3508
Page 2
Chapter 1: Business Combinations
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/69703
Sample Questions
Q1) According to ASC 810-10,liabilities assumed in an acquisition will be valued at the
A)fair value
B)historical book value
C)current replacement cost
D)present value using market interest rates
Answer: A
Q2) Following the accounting concept of a business combination,a business combination occurs when a company acquires an equity interest in another entity and has
A)at least 20% ownership in the entity.
B)more than 50% ownership in the entity.
C)100% ownership in the entity.
D)control over the entity,irrespective of the percentage owned.
Answer: D
Q3) For intangibles to be recognizable they must meet both a separability criterion and a contractual-legal criterion.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Stock Investments - Investor Accounting and Reporting
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/69702
Sample Questions
Q1) Pond Corporation uses the fair value method of accounting for its investment in Swan Company.Which one of the following events would not affect the Investment in Swan Co.account?
A)Investee losses
B)Investee dividend payments
C)An increase in the investee's share price from last period
D)Unrealized gains and losses from the available-for-sale securities classification
Answer: D
Q2) The GAAP requires the recording of common stock acquisitions in the investor record at cost.
A)True
B)False Answer: True
Q3) If an investor sells a portion of an equity investment and it reduces its interest below 20 percent the equity method of accounting is no longer appropriate.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: An Introduction to Consolidated Financial Statements
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69701
Sample Questions
Q1) In the consolidated income statement of Wattlebird Corporation and its 85% owned Forest subsidiary,the noncontrolling interest share was reported at $45,000.Assume the book value and fair value of Forest's net assets were equal at the acquisition date.What amount of net income did Forest have for the year?
A)$52,941
B)$38,250
C)$235,000
D)$300,000
Answer: D
Q2) A corporation becomes a subsidiary when another corporation acquires a controlling interest in its issued voting stock.
A)True
B)False
Answer: False
Q3) A consolidated income statement must clearly separate income attributable to the controlling and noncontrolling interests.
A)True
B)False
Answer: True
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Consolidated Techniques and Procedures
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69700
Sample Questions
Q1) Pigeon Corporation acquired an 80% interest in Statue Company on January 1,2014,for $90,000 cash when Statue had Capital Stock of $60,000 and Retained Earnings of $40,000.The fair value/book value differential of $12,500 was attributable to equipment with a 10-year (straight-line)life.Statue suffered a $10,000 net loss in 2014 and paid no dividends.At year-end 2014,Statue owed Pigeon $18,000 on account.Pigeon's separate income for 2011 was $150,000.Controlling interest share of consolidated net income for 2014 was
A)$140,000.
B)$141,000.
C)$142,000.
D)$150,000.
Q2) Under the equity method of accounting parent-retained earnings and the consolidated-retained earnings are equal.
A)True
B)False
Q3) What amount of Goodwill will be reported?
A)$54,400
B)$68,000
C)$72,000
D)$90,000
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Intercompany Profit Transactions - Inventories
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69699
Sample Questions
Q1) What is Pouch's income from Shenley for 2014?
A)$27,200
B)$29,600
C)$39,200
D)$49,000
Q2) Parent sales to its subsidiary increase parent sales,COGS and gross profit.
A)True
B)False
Q3) The 2014 consolidated income statement showed noncontrolling interest share of
A)$3,200.
B)$6,400.
C)$8,800.
D)$12,000.
Q4) What amount of unrealized profit did Pelga Company have at the end of 2015?
A)$10,000
B)$12,500
C)$50,000
D)$62,500
To view all questions and flashcards with answers, click on the resource link above.
7
Chapter 6: Intercompany Profit Transactions - Plant Assets
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69698
Sample Questions
Q1) For upstream sales the total amount of unrealized gains and losses are allocated between controlling and noncontrolling interest shares.
A)True
B)False
Q2) A gain or loss on sales downstream from parent to subsidiary is initially included in parent income and must be 100% eliminated.
A)True
B)False
Q3) Parrot Corporation acquired a 70% interest in Swifti Corp.on January 1,2013,when Swifti's book values and fair values were equivalent.On January 1,2014,Swifti sold a building with a book value of $60,000 to Parrot for $80,000.The building had a remaining life of five years,no salvage value,and was depreciated by the straight-line method.Swifti reported net income of $200,000 for 2014.What was the noncontrolling interest share for 2014?
A)$54,000
B)$55,200
C)$60,000
D)$128,800
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Intercompany Profit Transactions - Bonds
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69697
Sample Questions
Q1) If the market rate of interest on bonds that are recorded increases,the market value of the liability increases.
A)True
B)False
Q2) The parent,which controls all debt retirement for the consolidated entity can use its available resources to purchase and retire its own bonds if they choose not to use the fair value option.
A)True
B)False
Q3) Noncontrolling interest share for 2013 was
A)$23,000.
B)$23,600.
C)$24,000.
D)$24,400.
Q4) Using the original information,the amount of consolidated Interest Expense for 2014 was
A)$ 135,000.
B)$ 180,000.
C)$ 270,000.
D)$ 360,000.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Consolidations - Changes in Ownership
Interests
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69696
Sample Questions
Q1) Piecemeal acquisitions occurs when a corporation acquires an interest in another corporation in a series of separate stock purchases over a period of time.
A)True
B)False
Q2) Piecemeal acquisitions require the previously held investment to be measured at book value at the date control of the subsidiary is obtained.
A)True
B)False
Q3) If SOS sold the additional shares directly to Great,Great's Investment in SOS account after the sale would be
A)$1,350,000.
B)$1,395,000.
C)$1,425,000.
D)$1,500,000.
Q4) Preacquisition dividends are dividends paid on stock by the subsidiary before the date of acquisition by the parent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Indirect and Mutual Holdings
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69695
Sample Questions
Q1) The controlling interest share of consolidated net income for the current year is
A)$341,000.
B)$348,400.
C)$351,000.
D)$355,000.
Q2) Packer Corporation owns 100% of Abel Corporation,Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation.The separate net incomes (excluding investment income)of Packer,Abel,Bacon,and Cab are $300,000,$100,000,$200,000,and $300,000,respectively.All of the investments were made at times when the investee's book values were equal to their fair values.There were no cost/book value differentials for each investment.
Required:
Determine the controlling interest share of consolidated net income and noncontrolling interest shares for Packer Corporation and Subsidiaries for the current year.
Q3) Consolidation procedures for direct and indirect holdings are the same.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Subsidiary Preferred Stock, consolidated
Earnings Per Share, and Consolidated Income Taxation
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69694
Sample Questions
Q1) When a subsidiary has preferred stock that is convertible into subsidiary common stock,the parent's equity in the subsidiary's diluted earnings is calculated by the number of
A)subsidiary shares into which the subsidiary's dilutive securities can be converted times the subsidiary's basic EPS figure.
B)parent shares into which the subsidiary's dilutive securities can be converted times the parent's basic EPS figure.
C)subsidiary common shares held by the parent times the subsidiary's diluted EPS figure.
D)parent shares into which the subsidiary's dilutive securities can be converted times the subsidiary's basic EPS figure.
Q2) The GAAP requires that corporations report both basic and diluted earnings per share.
A)True
B)False
Q3) The consolidated entity must file a consolidated income tax return.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 11: Consolidation Theories, push-Down Accounting, and Corporate Joint Ventures
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/69693
Sample Questions
Q1) Unrealized gains and losses are to be considered when totalling consolidated net income under the entity theory.
A)True
B)False
Q2) Under the entity theory,a consolidated balance sheet prepared immediately after the business combination will show noncontrolling interest of
A)$5,000.
B)$7,500.
C)$9,000.
D)$10,000.
Q3) Joint ventures may be organized as partnerships or undivided interests,but not corporations.
A)True
B)False
Q4) Income attributable to the noncontrolling interest is treated as an expense.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Derivatives and Foreign Currency: Concepts and Common Transactions
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69692
Sample Questions
Q1) On April 1,2014,Button Industries enters into an agreement with Bows Incorporated to lock in the price of cotton.Button agrees to purchase (and Bows agrees to sell)100,000 pounds of cotton at $1.19 per pound,six months from the date of agreement.On October 1,2014,the price of cotton is $1.17 per pound.The contract allows for net settlement. Required:
Determine the net settlement on the forward contract.
Q2) Gains and losses on foreign currency transactions can be deferred until the foreign currency is converted into U.S.dollars.
A)True
B)False
Q3) One reason corporations enter into a derivative contract is to reduce the vulnerability of their cash flows.
A)True
B)False
Q4) Forward contracts are very standardized and easily traded in the markets. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Accounting for Derivatives and Hedging Activities
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69691
Sample Questions
Q1) When a company attempts to control the impact of price fluctuations on its future cash flows and its sales,it is entering into a cash-flow hedge.
A)True
B)False
Q2) What is the fair value of the forward contract at March 1?
A)$-0-
B)$1,654.97 asset
C)$1,654.97 liability
D)$1,680 asset
Q3) When a cash flow hedge is appropriate,the effective portion of the gain or loss on the derivative is
A)deferred using other comprehensive income.
B)recognized immediately at the time the agreement is made.
C)recognized over time,amortized over the period of the agreement.
D)recognized over time,offset by the fluctuation in the value of the hedged asset or liability.
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Foreign Currency Financial Statements
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69690
Sample Questions
Q1) Paskin Corporation's wholly-owned Canadian subsidiary has a Canadian dollar functional currency.In translating the subsidiary's account balances into U.S.dollars for reporting purposes,which one of the following accounts would be translated at historical exchange rates?
A)Accounts Receivable
B)Notes Payable
C)Capital Stock
D)Retained Earnings
Q2) Which of the following assets and/or liabilities are considered monetary?
A)Intangible Assets and Plant,Property,and Equipment
B)Bonds Payable and Common Stock
C)Cash and Accounts Payable
D)Notes Receivable and Inventories carried at cost
Q3) For foreign subsidiaries whose functional currency is not the parent's reporting currency the current rate method is used to translate assets and liabilities using the exchange rate on the balance sheet date.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
16
Chapter 15: Segment and Interim Financial Reporting
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/69689
Sample Questions
Q1) GAAP requires disclosures for each reportable operating segment for each of the following,except for A)Revenues.
B)Depreciation expense.
C)R&D expenditures.
D)Extraordinary items.
Q2) Management-approach-based segments are called operating segments.
A)True
B)False
Q3) For reporting purposes,a segment is considered material if its assets are 15 percent or more of the combined assets of all operating segments.
A)True
B)False
Q4) Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?
A)They have similar amounts of intersegment revenues or expenses.
B)They have a similar distribution method for products.
C)They have similar production processes.
D)They have similar products or services.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Partnerships - Formation,operations,and
Changes in Ownership Interests
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69688
Sample Questions
Q1) Required:
1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2014 is $250,000.
2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership).
Q2) Required:
1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2014 is $330,000.
2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership).
Q3) When property is invested in the partnership,it is recorded at fair value.
A)True
B)False
Q4) What partnership capital will Robert have after Quincy retires?
A)$200,000
B)$280,000
C)$360,000
D)$440,000
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Partnership Liquidation
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69687
Sample Questions
Q1) Which of the following procedures is acceptable when accounting for a deficit balance in a partner's capital account during partnership liquidation,if the partner with a negative capital balance is personally insolvent?
A)The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the apital account to zero.
B)The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to all the partners.
C)The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to those partners having positive balances.
D)The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the capital account to the same level of the other partners' capital accounts.
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: Corporate Liquidations and Reorganizations
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/69686
Sample Questions
Q1) Chapter 7 bankruptcy appoints a trustee to sell off the assets of the company and pay claims to its creditors.
A)True
B)False
Q2) A company emerging from bankruptcy will have a reorganization value that
A)approximates the book value of the entity's assets prior to bankruptcy.
B)approximates the book value of the entity prior to bankruptcy.
C)approximates the fair market value of the entity without considering liabilities.
D)approximates the fair market value of the entity's liabilities.
Q3) Creditor committees are elected
A)in all bankruptcy cases.
B)in Chapter 7 cases.
C)only in bankruptcy cases arising from involuntary petitions.
D)in Chapter 11 cases.
Q4) A statement of realization and liquidation is an activity statement that shows progress toward the liquidation of a debtor's estate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: An Introduction to Accounting for State and Local Governmental Units
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/69685
Sample Questions
Q1) Internal Service Funds differ from Enterprise Funds because Internal Service Funds
A)are a proprietary fund.
B)are intended to show a profit.
C)charge for their services.
D)provide goods and services primarily to other government agencies.
Q2) Government-wide financial statements include a
A)balance sheet,an income statement,and a statement of cash flows.
B)statement of net assets,a statement of activities,and a statement of cash flows.
C)statement of net position and a statement of activities.
D)statement of activities and a statement of cash flows.
Q3) What funds are reported in Government-wide financial statements?
A)Governmental only
B)Proprietary only
C)Governmental and proprietary
D)Governmental,proprietary and fiduciary
Q4) Permanent funds report resources whose use is permanently restricted.
A)True
B)False
21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Accounting for State and Local Governmental Units
- Governmental Funds
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/69684
Sample Questions
Q1) A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000.What entry is prepared by the Capital Projects Fund?
A)Debit Expenditures $1,000,000,Credit Liability $1,000,000
B)Debit Building $1,000,000,Credit Expenditures $1,000,000
C)Debit Other Financing Uses $1,000,000,Credit Expenditures $1,000,000
D)Debit Encumbrances $1,000,000,Credit Reserve for Encumbrances $1,000,000
Q2) Prepare journal entries to record the following grant-related transactions for a municipality's special revenue fund.
1.Special Revenue Fund awarded an operating grant from the state,$2,500,000 (cash will be received after qualified expenditures are made).
2.Special Revenue Fund received funds of $1,600,000,temporarily transferred from the General Fund.
3.Incurred qualifying expenditures on the state grant program of $1,600,000 and paid them with funds temporarily transferred from the General Fund.
4.Received a federal grant to finance planting of trees in city,$4,500,000 (cash received in advance).
5.Incurred and paid cost of $3,000,000 for planting 10,000 trees in city.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21:
Accounting for State and Local Governmental Units - Proprietary and Fiduciary Funds
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69683
Sample Questions
Q1) On the Statement of Net Position,in place of stockholders' equity,proprietary funds report
A)Retained Earnings only.
B)Restricted Cash only.
C)Unrestricted Cash only.
D)Net Position.
Q2) Journalize the following municipal zoo transactions in the Lackluster County Enterprise Fund:
1.The zoo issued $1,000,000 of 5% revenue bonds at 99 on July 1,2014 (an interest payment date).The bond proceeds are to be used for a new polar bear exhibit and the issue will mature in 20 years.Interest is paid on January 1 and July 1.
2.Depreciation for the year-ended December 31,2014 included $175,000 for buildings and $105,000 for outdoor exhibit areas.
3.The zoo paid $800,000 in construction costs for the new exhibit.The exhibit is still under construction.
4.Interest on the revenue bonds was accrued at year-end,December 31,2014.Straight-line amortization is used for bond discounts and premiums.
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 22: Accounting for Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/69682
Sample Questions
Q1) Prepare journal entries to record the following transactions for a private,not-for-profit university.
1.Tuition and fees assessed total $10,000,000,80% of which was collected by year-end; tuition scholarships were granted for $1,300,000,and $650,000 was expected to be uncollectible.
2.Revenues collected from sales and services by the university bookstore were $1,450,000.
3.Salaries and wages paid were $5,600,000,$300,000 of which was for employees of the university bookstore.
4.Financial aid funds of $700,000 were received from the Pell Grant program; the funds were then disbursed to the appropriate students.
5.Contributions of $600,000 were received; $30,000 was restricted for the athletic department and the balance was unrestricted.An additional $70,000 was pledged to the athletic department by the alumni.
6.Athletic equipment was purchased with $42,000 previously set aside for that purpose.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: Estates and Trusts
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/69681
Sample Questions
Q1) To open the books to create a trust "Trust fund principal" would be a debit for the value of the trust.
A)True
B)False
Q2) Which of the following are entitled to the remainder of the estate after all other rightful claims on the estate have been satisfied?
A)Remainder beneficiaries
B)Residual beneficiaries
C)Alternate beneficiaries
D)Secondary beneficiaries
Q3) A fiduciary is an individual or an entity authorized to take possession of the property of others.
A)True
B)False
Q4) A deceased person that has a valid will in force at the time of death is said to have died intestate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 25