Advanced Accounting Test Preparation
Course Introduction
Advanced Accounting explores complex financial accounting topics beyond the introductory level, equipping students with the knowledge to handle diverse business combinations, consolidations, partnerships, international transactions, and governmental and not-for-profit accounting issues. The course emphasizes the application of relevant accounting standards and practices, as well as critical analysis and interpretation of financial information for organizations operating in increasingly multifaceted environments. Participants will develop advanced problem-solving skills through case studies and real-world scenarios, preparing them for higher-level professional responsibilities in accounting and finance.
Recommended Textbook
Advanced Financial Accounting 8th Edition by Richard Baker
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20 Chapters
1041 Verified Questions
1041 Flashcards
Source URL: https://quizplus.com/study-set/3622
Page 2
Chapter 1: Intercorporate Acquisitions and Investments in Other Entities
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42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/71928
Sample Questions
Q1) Based on the information provided,what amount will be reported for Additional Paid-In Capital in the combined company's balance sheet immediately following the business combination?
A)$60,000
B)$80,000
C)$310,000
D)$290,000
Answer: D
Q2) Based on the preceding information,what amount of goodwill will be reported for Alpha at year-end?
A)$0
B)$20,000
C)$30,000
D)$10,000
Answer: B
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Chapter 2: Reporting Intercorporate Interests
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71927
Sample Questions
Q1) Based on the preceding information,Connector's total assets at the end of the year will be highest if it were able to use:
A)pro rata consolidation.
B)equity-method reporting.
C)cost-method reporting.
D)full consolidation.
Answer: D
Q2) Based on the preceding information,income tax expense for Denver for the year 2008 will be:
A)$67,000
B)$64,600
C)$64,000
D)$66,400
Answer: D
Q3) Based on the preceding information,during 2007,Firewire will report:
A)an increase in the investment account balance of $15,500.
B)a decrease in the investment account balance of $20,000.
C)an increase in the investment account balance of $36,000.
D)a decrease in the investment account balance of $31,500.
Answer: A
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Chapter 3: The Reporting Entity and Consolidated Financial Statements
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43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/71926
Sample Questions
Q1) Rohan Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value and fair value of $50,000.What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Helms Company pays $90,000 to acquire 75 percent ownership in Rohan and goodwill of $20,000 is reported?
A)$50,000
B)$30,000
C)$40,000
D)$20,000
Answer: B
Q2) Based on the preceding information,what amount would be reported in the consolidated financial statements for cost of goods sold for 2007?
A)$39,000
B)$36,000
C)$75,000
D)$0
Answer: D
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Chapter 4: Consolidation of Wholly Owned Subsidiaries
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52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/71925
Sample Questions
Q1) Based on the information provided,the amount of differential assigned to buildings and equipment that is amortized for the year is:
A)$5,000.
B)$4,000.
C)$10,000.
D)$3,600.
Q2) Based on the information provided,what amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition?
A)$30,000
B)$15,000
C)$85,000
D)$45,000
Q3) Based on the preceding information,what amount of differential will arise in the consolidation process?
A)$0
B)$5,000
C)$15,000
D)$65,000
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6
Chapter 5: Consolidation of Less-Than-Wholly Owned Subsidiaries
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51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/71924
Sample Questions
Q1) Based on the information given,what balance in accounts receivable did Y Company report at December 31,2008?
A)$28,000
B)$48,000
C)$40,000
D)$38,000
Q2) Based on the preceding information,what is the amount of comprehensive income attributable to the controlling interest for 2008?
A)$123,750
B)$118,750
C)$119,000
D)$104,000
Q3) Based on the information given,what was the fair value of Y Company as a whole at the date of acquisition?
A)$155,000
B)$110,000
C)$115,000
D)$135,000
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Chapter 6: Intercompany Transfers of Services and
Noncurrent Assets
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44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71923
Sample Questions
Q1) Based on the information provided,the gain on sale of the building eliminated in the consolidated financial statements for 2008 is:
A)$8,250.
B)$10,500.
C)$6,000.
D)$11,250.
Q2) Based on the information provided,while preparing the 2008 consolidated income statement,depreciation expense will be:
A)debited for $750 in the eliminating entries.
B)credited for $750 in the eliminating entries.
C)credited for $1500 in the eliminating entries.
D)debited for $1500 in the eliminating entries.
Q3) Based on the preceding information,in the preparation of the 2009 consolidated balance sheet,accumulated depreciation will be:
A)debited for $160,000 in the eliminating entries.
B)credited for $160,000 in the eliminating entries.
C)credited for $135,000 in the eliminating entries.
D)debited for $135,000 in the eliminating entries.
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Chapter 7: Intercompany Inventory Transactions
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71922
Sample Questions
Q1) Based on the information given above,what amount should be reported in the December 31,2008,consolidated balance sheet as inventory?
A)$36,000
B)$12,000
C)$15,000
D)$28,000
Q2) Based on the information given above,by what amount should Graceland write down inventory in its books?
A)$14,000
B)$15,000
C)$13,000
D)$16,000
Q3) Based on the information given above,what will be the income to controlling interest for 2008?
A)$615,375
B)$686,250
C)$690,000
D)$694,000
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9
Chapter 8: Intercompany Indebtedness
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) Based on the information given above,what was the effect of DEF's purchase of XYZ's bond on the noncontrolling interest amount reported in XYZ's June 30,2008,consolidated balance sheet?
A)No effect
B)$35,000 increase
C)$8,500 decrease
D)$8,500 increase
Q2) Based on the information given above,what amount of gain or loss on bond retirement will be reported in the 2008 consolidated financial statements?
A)$17,000
B)$12,800
C)$18,500
D)$22,200
Q3) Based on the information given above,what amount of gain or loss on bond retirement is included in the 2007 consolidated income statement?
A)$6,600
B)$4,800
C)$6,000
D)$5,400
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Chapter 9: Consolidation Ownership Issues
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46 Verified Questions
46 Flashcards
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Sample Questions
Q1) Based on the preceding information,what amount is reported as preferred stock outstanding reported in the consolidated balance sheet as of January 1,2008?
A)$0
B)$40,000
C)$50,000
D)$44,000
Q2) Based on the preceding information,what was the balance in the investment account reported by Vision on January 1,2009,before its sale of shares?
A)$225,000
B)$285,000
C)$245,000
D)$255,000
Q3) Based on the preceding information,what is the total noncontrolling interest reported in the consolidated balance sheet as of January 1,2008?
A)$80,000
B)$40,000
C)$50,000
D)$60,000
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11
Chapter 10: Additional Consolidation Reporting Issues
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) For a subsidiary to be eligible to be included in a consolidated tax return,at least _____ of its stock must be held by the parent company or another company included in the consolidated return.
A)50 percent
B)40 percent
C)75 percent
D)80 percent
Q2) Based on the preceding information,what is the consolidated earnings per share for 2008?
A)4.46
B)4.14
C)4.35
D)4.55
Q3) Based on the preceding information,what is the book value of shares acquired by Fair Logic on July 1,2008?
A)$240,000
B)$191,250
C)$230,000
D)$180,000
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Page 12
Chapter 11: Multinational Accounting: Foreign Currency
Transactions and Financial Instruments
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55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/71918
Sample Questions
Q1) Based on the information given above,how many U.S.dollars must be paid for a purchase of citrus fruits costing 10,000 Cyprus pounds?
A)$25,132
B)$15,132
C)$3,979
D)$35,775
Q2) Based on the preceding information,what is the market price of Linked Corporation stock on February 20,2009?
A)$35
B)$37
C)$36
D)$40
Q3) Based on the preceding information,what is the effect of the euro speculative contract on 2009 net income?
A)$4,000 loss
B)$1,000 gain
C)$8,000 gain
D)$2,000 loss
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Chapter 12: Multinational Accounting: Issues in Financial
Reporting and Translation of Foreign Entity Statements
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56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/71917
Sample Questions
Q1) Under the temporal method,which of the following is usually used to translate monetary amounts to the functional currency? I.The current exchange rate
II The historical exchange rate
III)Average exchange rate
A)I
B)III
C)II
D)Either I or II
Q2) Based on the preceding information,at what amount is the inventory shown on the consolidated balance sheet for the year?
A)$45,000
B)$30,000
C)$40,000
D)$35,000
Q3) Elan's Investment in Swiss subsidiary account at December 31,2008,is:
A)$1,881,050.
B)$1,916,050.
C)$1,923,950.
D)$2,051,500.
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Chapter 13: Segment and Interim Reporting
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Refer to the above information.Which of the operating segments above meet the revenue test?
A)B,D,and E
B)A and D
C)A,B,and D
D)B,C,D,and E
Q2) On June 30,2008,String Corporation incurred a $220,000 net loss from disposal of a business component.Also,on June 30,2008,String paid $60,000 for property taxes assessed for the calendar year 2008.What amount of the preceding items should be included in the determination of String's net income or loss for the six-month interim period ended June 30,2008?
A)$250,000
B)$220,000
C)$140,000
D)$280,000
Q3) Based on the preceding information,the cost of goods sold for the year 2008,is:
A)$2,080,000
B)$1,880,000
C)$1,835,000
D)$1,910,000
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Chapter 14: Sec Reporting
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52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/71915
Sample Questions
Q1) Which of the following divisions of the SEC regulates national securities exchanges,brokers,and dealers of securities?
A)Division of Investment Management
B)Division of Corporation Finance
C)Division of Corporation Regulation
D)Division of Market Regulation
Q2) Which of the following is defined as directly or indirectly having the power to vote the shares or investment power to sell the security?
A)Proxy
B)Significant influence
C)Control
D)Beneficial ownership
Q3) Staff Accounting Bulletins
Q4) Which regulation resulted in the creation of the Public Company Accounting Oversight Board?
A)Investment Advisers Act
B)Securities Investor Protection Act
C)Sarbanes-Oxley Act
D)Trust Indenture Act
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Chapter 15: Partnerships: Formation,operation,and
Changes in Membership
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53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/71914
Sample Questions
Q1) Refer to the information provided above.David invests $40,000 for a one-fifth interest in the total capital of $220,000.What are the capital balances of Allen and Daniel after David is admitted into the partnership?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Refer to the above information.Which statement below is correct if the old partners receive a bonus upon the contribution of assets into the partnership by a new partner?
A)B < A and D = C - A
B)B + A and D > C + A
C)B < A and D = C + A
D)B > A and D = C + A
Q3) Which of the following observations is true of an S corporation?
A)It elects to be taxed in the same manner as a corporation.
B)It does not have the burden of double taxation of corporate income.
C)Its shareholders have personal liability for the corporation's obligations.
D)Its primary income source should be passive investments.
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Chapter 16: Partnerships: Liquidation
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) On December 1,2009,the partners of Tim,Williams,and Levin,who share profits and losses in the ratio of 4:4:2,decided to liquidate their partnership.On this date the partnership condensed balance sheet was as follows: On December 11,2009,the first cash sale of other assets with a carrying amount of $200,000 realized $140,000.Safe installment payments to the partners were made on the same date.How much cash should be distributed to each partner?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Based on the preceding information,the journal entry on the partnership's books to record distribution of stock to prior partners will include a debit to Mike,Capital for:
A)$38,010.
B)$31,500.
C)$42,000.
D)$44,300.
Q3) A partnership may be involved in "Dissociation" or "Dissolution".
Required:
Describe "Dissociation" and "Dissolution."
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Page 18
Chapter 17: Governmental Entities: Introduction and General Fund Accounting
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66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/71912
Sample Questions
Q1) Under the modified accrual basis of accounting,revenue should be recognized when it is:
A)measurable and earned.
B)received in cash.
C)available and earned.
D)measurable and available.
Q2) The Town of Baker reported the following items on the June 30,2009,balance sheet of its general fund: At June 30,2009,what amount should be reported for Fund Balance-Unreserved?
A)$46,000
B)$40,000
C)$30,000
D)$16,000
Q3) Based on the preceding information,which of the following would be the correct account balances for 2007 if Gotham City used the consumption method of accounting for inventories?
A)Option A
B)Option B
C)Option C
D)Option D
19
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Chapter 18: Governmental Entities: Special Funds and
Government-Wide Financial Statements
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) GASB 34 requires a Reconciliation schedule for the Statement of Net Assets.What does this schedule document?
Q2) Ponca City issued general obligation bonds to finance construction of a new city hall.In the city hall capital projects fund,the proceeds of the general obligation bonds should be credited to:
A)Revenue-General Obligation Bonds.
B)General Obligation Bonds Payable.
C)Deferred Revenue-General Obligation Bonds.
D)Other Financing Sources-Bond Issue Proceeds.
Q3) Based on the preceding information,on the statement of net assets prepared at June 30,2009,what amount should be reported for net assets invested in capital assets,net of related debt?
A)$4,200,000
B)$2,900,000
C)$2,825,000
D)$3,300,000
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Page 20
Chapter 19: Not-For-Profit Entities
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113 Verified Questions
113 Flashcards
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Sample Questions
Q1) The governing board of a hospital operated by a religious organization designated $3,000,000 of cash to be used for plant expansion.The cash was invested in stocks and bonds which earned $250,000 of dividend and interest income.The income from investments should be reported on the hospital's statement of operations as an increase in:
A)temporarily restricted net assets.
B)operating income.
C)either temporarily restricted net assets or unrestricted net assets,depending upon the nature of the governing board's restrictions.
D)fund balance in the general fund.
Q2) Based on the preceding information,the journal entry to recognize present value at the time the pledge is received includes:
A)a credit to Pledges Receivable-Temporarily Restricted for $25,000.
B)a debit to Contributions-Temporarily Restricted for $21,062.
C)a debit to Pledges Receivable-Temporarily Restricted for $21,062.
D)a credit to Contributions-Temporarily Restricted for $25,000.
Q3) Income was earned from investments of assets that the board previously designated for plant expansion.
Q4) Incurred fund-raising costs.
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Chapter 20: Corporations in Financial Difficulty
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Which of the following items are likely to be reported in the supplementary items section of a statement of realization and liquidation?
A)Creditors' claims settled during the period.
B)Trustee's administration fees.
C)New obligations incurred by the trustee.
D)Assets subsequently acquired by the trustee.
Q2) Under Chapter 11 proceedings,what represents the fair value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the entity's assets?
A)Reorganization value
B)Fire sale value
C)Fresh start value
D)Excess value
Q3) The Statement of Realization and Liquidation contains sections for all the following items except:
A)assets.
B)supplementary items.
C)liabilities.
D)stockholders equity.
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Page 22