Advanced Accounting Practices
Pre-Test Questions
Course Introduction
Advanced Accounting Practices delves into complex accounting concepts, standards, and procedures applicable to various organizational structures, including partnerships, multinational corporations, and public entities. The course covers advanced topics such as consolidations, mergers and acquisitions, foreign currency transactions, segment and interim reporting, accounting for income taxes, and accounting changes and error corrections. Students will analyze and interpret financial statements in accordance with international and national accounting standards, focusing on ethical implications and current issues affecting the profession. This course equips learners with the technical expertise and critical thinking skills necessary to address sophisticated accounting challenges in a dynamic and globalized business environment.
Recommended Textbook
Advanced Financial Accounting 9th Edition by Richard Baker
Available Study Resources on Quizplus 20 Chapters
1069 Verified Questions
1069 Flashcards
Source URL: https://quizplus.com/study-set/3662
Page 2
Chapter 1: Intercorporate Acquisitions and Investments in Other Entities
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/72906
Sample Questions
Q1) Which of the following situations best describes a business combination to be accounted for as a statutory merger?
A)Both companies in a combination continue to operate as separate,but related,legal entities.
B)Only one of the combining companies survives and the other loses its separate identity.
C)Two companies combine to form a new third company,and the original two companies are dissolved.
D)One company transfers assets to another company it has created.
Answer: B
Q2) Based on the preceding information,under the acquisition method,what amount relating to the business combination would be expensed?
A)$72,000
B)$19,000
C)$53,000
D)$63,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Reporting Intercorporate Investments and
Consolidation of Wholly Owned Subsidiaries With No
Differential
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/72905
Sample Questions
Q1) Based on the information provided,what amount of total stockholder's equity will be reported in the consolidated balance sheet prepared on December 31,20X4?
A)$190,000
B)$335,000
C)$460,000
D)$310,000
Answer: B
Q2) Usually,an investment of 20 to 50 percent in another company's voting stock is reported under the:
A)cost method.
B)equity method.
C)full consolidation method.
D)fair value method.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: The Reporting Entity and Consolidation of
Less-Than-Wholly-Owned Subsidiaries With No Differential
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/72904
Sample Questions
Q1) All of the following statements accurately describe Special Purpose Entities (SPEs)except for:
A)SPEs are corporations,trust or partnerships created for a single specified purpose.
B)SPEs usually have no substantive operations and are used for financing operations.
C)SPEs are used for asset securitization,risk sharing and taking advantage of tax statues.
D)A variable interest entity (VIE)is a type of SPE with a limited number of equity investors.
Answer: D
Q2) Which of the following usually does not represent a variable interest?
A)Common stock,with no special features or provisions
B)Senior debt
C)Subordinated debt
D)Loan or asset guarantees
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Consolidation of Wholly Owned Subsidiaries
Acquired at More Than Book Value
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/72903
Sample Questions
Q1) On January 1,20X8,Blake Company acquired all of Frost Corporation's voting shares for $280,000 cash.On December 31,20X9,Frost owed Blake $5,000 for services provided during the year.When consolidated financial statements are prepared for 20X9,which entry is needed to eliminate intercompany receivables and payables in the consolidation worksheet?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Based on the information given above,goodwill will be reported in the consolidated balance sheet in the amount of:
A)$240,000.
B)$130,000.
C)$150,000.
D)$270,000.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Consolidation of Less-Than-Wholly-Owned
Subsidiaries Acquired at More Than Book Value
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/72902
Sample Questions
Q1) Based on the preceding information,what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?
A)$0
B)$65,000
C)$70,000
D)$60,000
Q2) Based on the information given,what balance in accounts receivable did Y Company report at December 31,20X8?
A)$28,000
B)$48,000
C)$40,000
D)$38,000
Q3) Based on the information given,X Company and Y Company reported wages payable of
A)$50,000 and $28,000 respectively.
B)$60,000 and $32,000 respectively.
C)$40,000 and $35,000 respectively.
D)$28,000 and $60,000 respectively.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Intercompany Inventory Transactions
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/72901
Sample Questions
Q1) Based on the information given above,what amount of inventory should be eliminated in the consolidation worksheet for 20X8?
A)$15,000
B)$14,000
C)$12,000
D)$13,000
Q2) Based on the information given above,what amount of cost of goods sold should be eliminated in the consolidation worksheet for 20X8?
A)$82,000
B)$70,000
C)$95,000
D)$60,000
Q3) Based on the information given above,what amount should be reported in the December 31,20X8,consolidated balance sheet as inventory?
A)$36,000
B)$12,000
C)$15,000
D)$28,000
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Intercompany Transfers of Services and
Noncurrent Assets
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/72900
Sample Questions
Q1) Based on the preceding information,in the preparation of elimination entries related to the equipment transfer for the 20X9 consolidated financial statements,the net effect on accumulated depreciation will be:
A)a decrease of $160,000.
B)an increase of $160,000.
C)an increase of $135,000.
D)a decrease of $135,000.
Q2) Based on the preceding information,in the preparation of the 20X9 consolidated financial statements,equipment will be:
A)debited for $1,000.
B)debited for $10,000.
C)credited for $15,000.
D)debited for $25,000.
Q3) PeopleMag sells a plot of land for $100,000 to Seven Star Company,its 100 percent owned subsidiary,on January 1,20X7.The cost of the land was $75,000,when it was purchased in 20X6.In 20X9,Seven Star sells the land to Hot Properties Inc. ,an unrelated entity,for $120,000.How is the land reported in the consolidated financial statements for 20X7,20X8 and 20X9?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Intercompany Indebtedness
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/72899
Sample Questions
Q1) Based on the information given above,what percentage of the subsidiary's ownership does the parent company hold?
A)75 percent
B)65 percent
C)80 percent
D)95 percent
Q2) Based on the information given above,what amount of interest expense will be eliminated in the preparation of the 20X9 consolidated financial statements?
A)$17,000
B)$13,300
C)$18,500
D)$22,200
Q3) Based on the information given above,what amount of premium on bonds payable will be eliminated in the preparation of the 20X8 year-end consolidated financial statements?
A)$3,500
B)$2,800
C)$5,000
D)$2,500
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: Consolidation Ownership Issues
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/72898
Sample Questions
Q1) Based on the information provided,what amount will be reported as income assigned to the controlling interest for 20X9 under the treasury stock method?
A)$18,750
B)$156,250
C)$175,000
D)$100,000
Q2) Based on the information provided,what amount of income will be assigned to the controlling interest in the 20X8 consolidated income statement?
A)$130,750
B)$150,000
C)$141,250
D)$157,000
Q3) Based on the information provided,what amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X9?
A)$55,000
B)$25,000
C)$30,000
D)$43,750
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Additional Consolidation Reporting Issues
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/72897
Sample Questions
Q1) Based on the information provided,what was the consolidated cash balance at January 1,20X8?
A)$60,000
B)$85,000
C)$15,000
D)$380,000
Q2) Based on the information provided,what is the diluted earnings per share for the consolidated entity for 20X8?
A)4.53
B)4.33
C)4.00
D)3.80
Q3) Based on the preceding information,what is the book value of shares acquired by Fair Logic on July 1,20X8?
A)$240,000
B)$191,250
C)$230,000
D)$180,000
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: Multinational Accounting: Foreign Currency
Transactions and Financial Instruments
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/72896
Sample Questions
Q1) Company X issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase.Company Y has a fixed-rate bond but is looking for a variable-rate interest because it assumes the interest rates may decrease.The two companies agree to exchange cash flows.Such an arrangement is called:
A.a futures contract.
B.a forward contract.
C.a swap.
D.an option.
Q2) Based on the preceding information,what is the effect of the British pound speculative contract on 20X8 net income?
A)$10,000 gain
B)$6,000 gain
C)$8,000 gain
D)$2,000 loss
Q3) Based on the preceding information,the entries on December 31,20X8,include a:
A)Credit to Foreign Currency Payable to Exchange Broker,$4,000.
B)Debit to Foreign Currency Receivable from Exchange Broker,$6,000.
C)Debit to Foreign Currency Receivable from Exchange Broker,$186,000.
D)Debit to Foreign Currency Transaction Gain,$4,000.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Multinational Accounting: Issues in Financial
Reporting and Translation of Foreign Entity Statements
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/72895
Sample Questions
Q1) Simon Company has two foreign subsidiaries.One is located in France,the other in England.Simon has determined the U.S.dollar is the functional currency for the French subsidiary,while the British pound is the functional currency for the English subsidiary.Both subsidiaries maintain their books and records in their respective local currencies.What methods will Simon use to convert each of the subsidiary's financial statements into U.S.dollars?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Refer to the above information.Assuming Perth's local currency is the functional currency,what is the amount of patent amortization for 20X8 that results from Johnson's acquisition of Perth's stock on January 2,20X8? Round your answer to the nearest dollar.
A)$11,500
B)$11,884
C)$7,667
D)$9,394
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Segment and Interim Reporting
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/72894
Sample Questions
Q1) Trimester Corporation's revenue for the year ended December 31,20X8,was as follows: Trimester has a reportable operating segment if that segment's revenue exceeds:
A)$65,500
B)$60,000
C)$64,500
D)$61,000
Q2) Based on the preceding information,the cost of goods sold for the first quarter is:
A)$636,000
B)$564,000
C)$546,000
D)$624,000
Q3) Based on the preceding information,in the entry to record the replacement of the 1,500 units in November,Inventory will be debited for:
A)$52,500.
B)$75,000.
C)$67,500.
D)$60,000.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Sec Reporting
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/72893
Sample Questions
Q1) Regulation S-X presents the rules for preparing all of the following except:
A)financial statements.
B)footnotes.
C)auditor's report.
D)management's discussion.
Q2) Which of the following statements concerning pro forma disclosures is not true?
A)They show the effects of major transactions that occur after the end of the fiscal period.
B)They show the effects of major transactions that have occurred during the year but are not fully reflected in the company's historical cost financial statements.
C)The SEC requires these to be presented only when the company has made an unusual asset exchange,or a restructuring of existing indebtedness.
D)They often take the form of summarized financial statements.
Q3) Regulation S-X and Regulation S-K:
A)govern the preparation of financial statements and associated disclosures.
B)govern the registration requirements for private placements.
C)outline responsibilities for audit committees of publicly held companies.
D)prohibit artificial pyramids of capital in public utilities.
Q4) Accounting and Auditing Enforcement Releases
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Partnerships: Formation, operation, and
Changes
in Membership
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/72892
Sample Questions
Q1) Shue,a partner in the Financial Brokers Partnership,has a 30 percent share in partnership profits and losses.Shue's capital account had a net decrease of $100,000 during 20X8.During 20X8,Shue withdrew $240,000 as withdrawals and contributed equipment valued at $50,000 to the partnership.What was the net income of the Financial Brokers Partnership for 20X8?
A)$633,334
B)$466,666
C)$300,000
D)$190,000
Q2) Transferable interest of a partner includes all of the following except:
A)the partner's share of the profits and losses of the partnership. B)the right to receive distributions.
C)the right to receive any liquidating distribution.
D)the authority to transact any of the partnership's business operations.
Q3) Apple and Betty are planning on beginning a new business.They plan on forming a partnership.Apple will contribute $300,000 and will not be working.Betty will be working full time.They plan on splitting profits equally.They approach you,as an accounting major,to confirm their thoughts.What do you recommend?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Partnerships: Liquidation
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/72891
Sample Questions
Q1) Based on the preceding information,what amounts will be distributed to Page and Larry upon liquidation of the partnership?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Which of the following items are important in the determination of safe installment payments to partners?
I.Deficits created in capital accounts are distributed to the remaining partners.
II.All unsold noncash assets are assumed to be worthless.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
Q3) A partnership may be involved in "Dissociation" or "Dissolution."
Required:
Describe "Dissociation" and "Dissolution."
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Governmental Entities: Introduction and General
Fund Accounting
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/72890
Sample Questions
Q1) Which of the following statements is (are)correct about the funds used by governmental entities?
A)I only
B)II only
C)I and II
D)Neither I nor II
Q2) When an internal service fund (ISF)enters into a capital lease the transaction is recorded in the:
I.fixed assets of the ISF.
II.long-term debt of the ISF.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
Q3) Briefly discuss the various types of governmental funds and proprietary funds.
Q4) Identify the legal term that allows the general fund to make expenditures.
A)Exceptions
B)Appropriations
C)Encumbrances
D)Consumption
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Governmental Entities: Special Funds and Government-Wide Financial Statements
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/72889
Sample Questions
Q1) Which of the following fiduciary funds does not require a statement of changes in net assets?
I.Private-purpose trust fund.
II.Agency fund.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
Q2) Which presentation method combines the component unit's results into the primary government's financial results?
A)Blended presentation
B)Discrete presentation
C)Combined presentation
D)Consolidated presentation
Q3) Which of the following funds use the accrual basis of accounting?
A)I only
B)II only
C)I and III only
D)I,II,and III
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Not-For-Profit Entities
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/72888
Sample Questions
Q1) Transaction: Expended 50 percent of the contributions restricted for research in the previous item.
Effect on Statement of Operations:
A)Increases operating income.
B)Decreases operating income.
C)The transaction is reported on the statement of operations,but there is no effect on operating income.
D)The transaction is not reported on the statement of operations.
Q2) The term "restricted" as used in university accounting refers to a constraint on the use of funds which has been:
I.internally imposed.
II.externally imposed.
A)I only
B)II only
C)Either I or II
D)Neither I nor II
Q3) "Classification of an endowment contribution" describes which term listed above?
Q4) Incurred fund-raising costs.
Q5) "Basis of accounting for private NFPs" describes which term listed above?
Q6) "Financial statement of a private NFP entity" describes which term listed above?
Page 21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Corporations in Financial Difficulty
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/72887
Sample Questions
Q1) The payment to general unsecured creditors is often termed:
A)a "preference payment."
B)a "dividend."
C)a "write-off."
D)a "bonus."
Q2) On a debtor-in-possession income statement,which of the following items should be reported under the heading "Reorganization Items"?
A)Sales
B)Selling expenses
C)Income tax benefit
D)Loss on disposal of assets
Q3) In which of the following ways can debt be restructured?
I.Assets can be transferred to the creditor.
II.An equity interest can be granted to the creditor.
III.The terms of the debt can be modified.
A)I and II only
B)I and III only
C)II and III only
D)I,II,and III
Q4) Briefly explain the three classes of creditors specified in the Bankruptcy Code.
Page 22
To view all questions and flashcards with answers, click on the resource link above.