Advanced Financial Accounting Practice
Exam
Course Introduction
Advanced Financial Accounting is designed to deepen students understanding of complex accounting concepts and procedures beyond introductory levels. The course covers a range of important topics including the preparation and interpretation of consolidated financial statements, accounting for business combinations, intercompany transactions, foreign currency transactions, segment and interim reporting, and accounting for partnerships. Emphasis is placed on applying relevant International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), as well as critically analyzing financial statements for decision-making purposes. Through case studies and practical exercises, students develop the analytical skills necessary to address real-world accounting challenges in a global 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) Based on the preceding information,what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?
A)$0
B)$60,000
C)$30,000
D)$10,000
Answer: D
Q2) Based on the preceding information,what is the par value of Public's common stock?
A)$10
B)$1
C)$5
D)$4
Answer: D
Q3) Based on the preceding information,Regan Company will report
A)additional paid-in capital of $0.
B)additional paid-in capital of $150,000.
C)additional paid-in capital of $162,000.
D)additional paid-in capital of $180,000.
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 preceding information,what amount of investment income will William Company report from its investment in eGate for the year?
A)$45,000
B)$42,000
C)$62,000
D)$35,000
Answer: B
Q2) Based on the information provided,what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31,20X4?
A)$235,000
B)$210,000
C)$310,000
D)$225,000
Answer: A
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) Princeton Company acquired 75 percent of the common stock of Sheffield Corporation on December 31,20X9.On the date of acquisition,Princeton held land with a book value of $150,000 and a fair value of $300,000;Sheffield held land with a book value of $100,000 and fair value of $500,000.Using the entity theory,at what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?
A)$650,000
B)$500,000
C)$550,000
D)$375,000
Answer: A
Q2) Based on the preceding information,what amount would be reported as income to controlling interest in the consolidated financial statements for 20X9?
A)$168,000
B)$138,000
C)$164,000
D)$150,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 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) Based on the preceding information,at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$130,000
B)$105,000
C)$115,000
D)$120,000
Q2) Based on the preceding information,what amount of total retained earnings will be reported in the consolidated balance sheet for the year 20X8?
A)$330,000
B)$450,000
C)$430,000
D)$370,000
Q3) Based on the preceding information,what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$0
B)$21,000
C)$6,000
D)$15,000
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 will be reported as total stockholders' equity in the consolidated balance sheet prepared immediately after the business combination?
A)$445,000
B)$205,000
C)$565,000
D)$550,000
Q2) Based on the preceding information,what amount of total liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$395,000
B)$280,000
C)$275,000
D)$195,000
Q3) Based on the preceding information,what is the amount of consolidated comprehensive income reported for 20X9?
A)$145,000
B)$135,000
C)$138,750
D)$128,750
To view all questions and flashcards with answers, click on the resource link above.
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 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
Q2) Assume Shove sold the inventory to Push. Using the fully adjusted equity method,what journal entry would be recorded by Push to defer the unrealized gross profit on inventory sales to Shove in 20X1?
A)Option A
B)Option B
C)Option C
D)Option D
Q3) Based on the information given above,what will be the income to controlling interest for 20X8?
A)$615,375
B)$686,250
C)$690,000
D)$694,000
To view all questions and flashcards with answers, click on the resource link above.
Page 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,what will be the worksheet eliminating entry to remove the effects of the intercompany sale of land in preparing the consolidated financial statements for 20X9?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Based on the preceding information,the gain on sale of the equipment recorded by Mortar for 20X8 is:
A)$150,000
B)$65,000
C)$110,000
D)$40,000
Q3) Based on the preceding information,in the preparation of the 20X9 consolidated balance sheet,machine will be:
A)debited for $1,000.
B)debited for $15,000.
C)credited for $45,000.
D)debited for $25,000.
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 amount of constructive gain will be allocated to noncontrolling interest in 20X8 consolidated financial statements?
A)$4,925
B)$5,550
C)$5,625
D)$4,625
Q2) Based on the information given above,what amount of premium on bonds payable will be eliminated in the preparation of the 20X8 consolidated financial statements?
A)$3,500
B)$2,800
C)$5,000
D)$2,500
Q3) Based on the information given above,what amount of interest expense should be reported in the 20X8 consolidated income statement?
A)$6,000
B)$6,500
C)$5,000
D)$10,000
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) Windsor Corporation owns 75 percent of Elven Corporation's outstanding common stock.Elven,in turn,owns 15 percent of Windsor's outstanding common stock.What percent of the dividends paid by Windsor is reported as dividends declared in the consolidated retained earnings statement?
A)None
B)100 percent
C)85 percent
D)75 percent
Q2) Based on the preceding information,what will be the equity method income reported by Company A from its investment in Company B during 20X9?
A)$32,000
B)$30,000
C)$72,000
D)$48,000
Q3) The ending balance in Additional Paid-In Capital would be:
A)$0
B)$187,500
C)$312,500
D)$125,000
To view all questions and flashcards with answers, click on the resource link above. Page 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 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
Q2) Based on the information provided,what amount was reported as dividends paid in the cash flow from financing activities section of the consolidated statement of cash flows?
A)$25,000
B)$33,000
C)$27,000
D)$8,000
Q3) Based on the information provided,what is the balance of Catalyst's investment in Trigger Corporation as of December 31,20X8?
A)$216,000
B)$225,000
C)$213,000
D)$215,000
To view all questions and flashcards with answers, click on the resource link above.
Page 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) Which of the following observations is true of futures contracts?
A)Contracted through a dealer,usually a bank.
B)Customized to meet contracting company's terms and needs.
C)Typically no margin deposit required.
D)Traded on an exchange and acquired through an exchange broker.
Q2) Based on the preceding information,what was the overall foreign currency gain or loss on the accounts payable transaction?
A.$300 loss
B.$200 loss
C.$100 gain
D.$200 gain
Q3) 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.
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) All of the following stockholders' equity accounts of a foreign subsidiary are translated at historical exchange rates except:
A)retained earnings.
B)common stock.
C)additional paid-in capital.
D)preferred stock.
Q2) For each of the items listed below,state whether they increase or decrease the balance in cumulative translation adjustments (assuming a credit balance at the beginning of the year)when the foreign currency strengthened relative to the U.S.dollar during the year.
A)Option A
B)Option B
C)Option C
D)Option D
Q3) Use the information given in question 52 to prepare a schedule providing a proof of the translation adjustment.
To view all questions and flashcards with answers, click on the resource link above.
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) Tyler Company incurred an inventory loss due to a decline in market prices during its first quarter of operations in 20X8.At the end of the first quarter,management of the company believed the decline in market prices to be permanent.In the second quarter,the market prices of Tyler's inventories increased above their acquisition cost.Market prices remained higher than acquisition cost during the remainder of 20X8.How should Tyler report the facts above on its first and second quarter income statements?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Based on the preceding information,in the entry in August to record the sale of the 2,000 units:
A)Cost of Goods Sold will be debited for $70,000.
B)Inventory will be credited for $85,000.
C)Excess of Replacement Cost over LIFO Cost of Inventory Liquidation will be credited for $15,000.
D)Excess of Replacement Cost over LIFO Cost of Inventory Liquidation will be credited for $67,000.
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) 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
Q2) Which of the following statements concerning the management discussion and analysis (MD&A)of a company's financial condition is true?
I.It should cover the financial statements and other statistical data for the most recent three-year time span.
II.It should make year-to-year comparisons of material changes in the line items.
III.Management need not explain the cause(s)of the material changes.
IV.Disclosure of material off-balance sheet transactions,arrangements,and obligations is required in each annual and each quarterly report.
A)I,II,and IV
B)II and III
C)I,III,and IV
D)I,II,III,and IV
To view all questions and flashcards with answers, click on the resource link above.
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) Which of the following statements best describes limited partnerships?
A)In an LLP,there must be at least one general partner that is personally liable for the obligations of the partnership and has management responsibilities.
B)There are no general or limited partners in an LP;each partner has the rights and duties of a general partner,but limited legal liability.
C)The identifier LP or LLP need not be included in the name or identification of a limited partnership.
D)If the presumption of control by the general partner can be overcome,the partner would account for its investment using the equity method of accounting.
Q2) The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000,plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance.If income is $150,000,the bonus should be:
A)$18,000
B)$20,000
C)$24,000
D)$30,000
To view all questions and flashcards with answers, click on the resource link above.
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) On December 1,20X9,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 11,20X9,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) Partner A has a smaller capital balance than Partner L.Partner A,however,has a higher profit-and-loss-sharing percentage than Partner L.The LA partnership has decided to liquidate.As a result of the information given,
A)Partner L will have a smaller loss absorption power than A.
B)Partner L will receive cash only after A has received cash.
C)Partner A will have a smaller loss absorption power than L.
D)Partner A will never receive any cash from partnership liquidation.
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) In a town's general fund operating budget for the year,the amount of its estimated revenues exceeded the amount of its appropriations.This excess should be:
A)credited to Budgetary Fund Balance-Unassigned.
B)debited to Budgetary Fund Balance-Unassigned.
C)credited to Fund Balance-Unassigned.
D)debited to Fund Balance-Unassigned.
Q2) Which of the following describes how a governmental fund (e.g.general fund)accounts for a capital lease?
A)noncurrent liability
B)bond accounting
C)an asset and a lease liability
D)none of the above identifies the appropriate way to account for a capital lease.
Q3) Briefly discuss the various types of governmental funds and proprietary funds.
Q4) Discuss major differences between a governmental entity's uses of the modified accrual method and a for-profit corporation's use of the accrual method.
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) During the fiscal year ended June 30,20X9,the city of Moorhead constructed a new courthouse which was budgeted to cost $5,000,000.Moorhead used a capital projects fund to account for the construction activities.In July of 20X8,a bid was accepted from Diamond Construction to build the courthouse for $4,800,000.On June 15,20X9,Diamond completed construction and submitted a bill to the city for $4,900,000.The city accepted the bill and paid Diamond the entire amount owed,except for a 10 percentage retainage.On the statement of revenues,expenditures,and changes in fund balance prepared for the capital projects fund for the year ended June 30,20X9,expenditures should be reported at
A)$4,900,000.
B)$4,800,000.
C)$4,410,000.
D)$4,320,000.
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
To view all questions and flashcards with answers, click on the resource link above. Page 20
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) Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amounts should be reported under the classifications of temporarily and permanently restricted net assets?
A)$0 and $110,000 respectively.
B)$110,000 and $0 respectively.
C)$60,000 and $50,000 respectively.
D)$50,000 and $60,000 respectively.
Q2) On the statement of operations prepared for a private,not-for-profit hospital,patient service revenue earned during the year is reported net of amounts for which of the following items?
I.Contractual adjustments
II.Bad debts expense
A)I only
B)II only
C)I and II
D)Neither I nor II
Q3) Acquired equipment with all of the contributions previously received from donors for equipment purchases.
Q4) "Financial statement of a private NFP entity" describes which term listed above?
To view all questions and flashcards with answers, click on the resource link above. Page 21
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) Which of the following observations regarding the use of fresh start accounting is true?
A)It is always required under Chapter 11 bankruptcy proceedings.
B)Prior shareholders will have control of the emerging company.
C)It results in a new reporting entity.
D)It is used under Chapter 7 bankruptcy proceedings.
Q2) The Statement of Realization and Liquidation contains sections for all the following items except:
A)assets.
B)supplementary items.
C)liabilities.
D)stockholders equity.
Q3) Under the Bankruptcy Code,an insolvent corporation may be:
I.Reorganized.
II.Liquidated.
A)I
B)II
C)Either I or II
D)Neither I nor II
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.