Financial Reporting Exam Preparation Guide
Course Introduction
Financial Reporting provides a comprehensive introduction to the principles and practices involved in preparing, presenting, and analyzing financial statements in accordance with applicable accounting standards. This course covers the conceptual framework of financial reporting, the structure and content of key financial reports such as the balance sheet, income statement, and cash flow statement, as well as the regulatory environment and ethical considerations. Students learn how financial information is communicated to stakeholders, the importance of transparency and accuracy, and how to interpret financial data for decision-making purposes. The course also explores contemporary issues in financial reporting and the global harmonization of accounting standards.
Recommended Textbook
Advanced Financial Accounting 12th Edition by Theodore
Available Study Resources on Quizplus 21 Chapters
1263 Verified Questions
1263 Flashcards
Source URL: https://quizplus.com/study-set/3736
Page 2
E. Christensen
Chapter 1: Intercorporate Acquisitions and Investments in Other Entities
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/74502
Sample Questions
Q1) Based on the information provided,at the time of the transfer,Selvick Company should record
A)the building at $220,000 and accumulated depreciation of $44,000.
B)the building at $220,000 with no accumulated depreciation.
C)the building at $176,000 with no accumulated depreciation.
D)the building at $250,000 with no accumulated depreciation.
Answer: A
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
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
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Reporting Intercorporate Investments and
Consolidation of Wholly Owned Subsidiaries With No Differential
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/74501
Sample Questions
Q1) Based on the preceding information,what is the consolidated retained earnings balance on December 31,20X2?
A)$402,000
B)$410,000
C)$430,000
D)$562,000
Answer: C
Q2) Usually,an investment of 20 to 50 percent in another company's voting stock is reported under the:
A)cost method.
B)full consolidation method.
C)equity method.
D)fair value method.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter
3: The Reporting Entity and the 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/74500
Sample Questions
Q1) Which of the following statements are true relative to US GAAP and IFRS consolidation rules?
A)US GAAP allows for two consolidation models,the VIE model and the voting interest model.
B)US GAAP and IFRS both use the notion of control to determine whether consolidation is appropriate.
C)US GAAP and IFRS differ to some degree as to the definition of control.
D)All of the given statements are true relative to US GAAP and IFRS consolidation rules.
Answer: D
Q2) Based on the preceding information,what will be the amount of net income reported by Salmon Corporation in 20X2?
A)$45,000
B)$50,000
C)$75,000
D)$105,000
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
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/74499
Sample Questions
Q1) Perimeter,Inc.acquired 30 percent of South Co.'s (South)voting stock for $200,000 on January 1,20X1.Perimeter's 30 percent interest in South gave Perimeter the ability to exercise significant influence over South's operating and financial policies.On that date,South reported assets of $500,000 and liabilities of $100,000.South had equipment with a book value of $60,000 that was actually worth $160,000.The equipment had a remaining useful life of five years.During 20X1,South reported net income of $80,000 and paid dividends of $50,000.What amount of income should Perimeter recognize in 20X1 as a result of this investment?
A)$18,000
B)$4,000
C)$15,000
D)$16,750
Q2) Based on the information provided,what amount of total assets will be reported in the consolidated balance sheet for the year?
A)$895,000
B)$801,000
C)$723,000
D)$1,111,000
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
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/74504
Sample Questions
Q1) Based on the preceding information,what amount of differential would Paris amortize during 20X6 in its equity method journal entries?
A)$13,200
B)$15,000
C)$22,000
D)$30,000
Q2) Based on the information given,what balance in accounts receivable did Syrup Company report at December 31,20X8?
A)$28,000
B)$48,000
C)$40,000
D)$38,000
Q3) Based on the information given,what is the amount of unpaid consulting services at December 31,20X8,on work done by Pancake Company for Syrup Company?
A)$0
B)$10,000
C)$5,000
D)$15,000
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
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/74498
Sample Questions
Q1) Based on the information given above,what amount of sales must be eliminated from the consolidated income statement for 20X8?
A)$117,000
B)$120,000
C)$150,000
D)$128,000
Q2) Based on the information given above,what amount of cost of goods must be eliminated from the consolidated income statement for 20X4?
A)$3,596,000
B)$3,379,000
C)$806,000
D)$589,000
Q3) Based on the information given above,what amount of cost of goods sold must be reported in the consolidated income statement for 20X8?
A)$2,765,000
B)$1,620,000
C)$1,422,000
D)$2,963,000
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
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/74497
Sample Questions
Q1) Based on the preceding information,at what amount should the land be reported in the consolidated balance sheet as of December 31,20X5?
A)$220,000
B)$240,000
C)$305,000
D)$350,000
Q2) Based on the preceding information,in the preparation of the 20X8 consolidated financial statements,equipment will be:
A)debited for $50,000.
B)debited for $40,000.
C)credited for $70,000.
D)debited for $25,000.
Q3) Based on the preceding information,what should be the amount of income assigned to the controlling shareholders in the consolidated income statement for 20X5?
A)$110,000
B)$474,000
C)$525,000
D)$635,000
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
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/74496
Sample Questions
Q1) Based on the information given above,what price did Pants pay to purchase the Shirt bonds?
A)$324,000
B)$312,098
C)$311,902
D)$300,000
Q2) Based on the information given above,what was the carrying amount of the bonds on Shirt's books on the date of purchase by Pants?
A)$300,000
B)$311,902
C)$312,098
D)$324,000
Q3) Based on the information given above,what amount of interest income will be eliminated in the preparation of the 20X9 consolidated financial statements?
A)$16,420
B)$11,494
C)$16,103
D)$11,291
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Consolidation Ownership Issues
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/74495
Sample Questions
Q1) Based on the preceding information,in the consolidating entry needed in preparing a consolidated balance sheet immediately following the acquisition of shares,Investment in Screen stock will be credited for:
A)$165,625.
B)$135,625.
C)$185,000.
D)$155,000.
Q2) Based on the preceding information,what was the balance in Perfect's Investment in Storm Company Stock account on December 31,20X9?
A)$164,500
B)$157,500
C)$165,000
D)$168,000
Q3) Based on the preceding information,the elimination entry to prepare the consolidated financial statements on December 31,20X7 would include a:
A)debit to common stock for $812,500
B)credit to additional paid-in capital for $187,500
C)credit to Investment in Siena Co.for $744,000
D)credit to retained earnings for $350,000
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
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/74494
Sample Questions
Q1) Based on the preceding information,what is the fair value of the noncontrolling interest at the time of acquisition?
A)$47,813
B)$57,500
C)$60,000
D)$45,000
Q2) Based on the information provided,what is the consolidated income to the controlling interest reported for the year 20X4?
A)$275,000
B)$280,000
C)$260,000
D)$200,000
Q3) Based on the information provided,what is the balance of Pony's investment in Saddle 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
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/74493
Sample Questions
Q1) Based on the preceding information,the entries on January 30,20X9 related to the forward contract include a:
A)Debit to Dollars Payable to Exchange Broker,$184,000.
B)Credit to Foreign Currency Transaction Gain,$4,000.
C)Credit to Foreign Currency Receivable from Exchange Broker,$180,000.
D)Debit to Foreign Currency Units (SFr),$184,000.
Q2) Based on the preceding information,had Robert not used the forward exchange contract,what would have been the foreign currency transaction gain or loss for the year?
A)Gain of $200
B)Gain of $150
C)Loss of $350
D)Loss of $200
Q3) Based on the preceding information,in the entry to record the increase in the intrinsic value of the options on December 31,20X8,
A)Purchased Call Options will be credited for $100,000.
B)Purchased Call Options will be debited for $130,000.
C)Retained Earnings will be credited for $100,000.
D)Other Comprehensive Income will be credited for $100,000.
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
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/74492
Sample Questions
Q1) Based on the preceding information,in the stockholders' equity section of Leo's consolidated balance sheet at December 31,20X8,Leo should report the translation adjustment as a component of other comprehensive income of:
A)$19,440
B)$17,000
C)$18,786
D)$19,380
Q2) Based on the preceding information,in the journal entry to record the receipt of dividend from Steamship,
A)Investment in Steamship Company will be credited for $3,450.
B)Cash will be debited for $3,300.
C)Investment in Steamship Company will be credited for $4,000.
D)Cash will be debited for $3,600.
Q3) Based on the preceding information,in the journal entry to record parent's share of subsidiary's translation adjustment:
A)Other Comprehensive Income-Translation Adjustment will be debited for $8,000.
B)Other Comprehensive Income-Translation Adjustment will be credited for $6,000.
C)Investment in Steamship Company will be credited for $6,000.
D)Investment in Steamship Company will be debited for $8,000.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Segment and Interim Reporting
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/74491
Sample Questions
Q1) Assume that the replacement did not happen in November.In December,the company decided not to replace any of the 1,500 units.The entry required on December 31 to eliminate valuation accounts related to the inventory that will not be replaced will include:
A)a debit to Excess of Replacement Cost over LIFO Cost of Inventory Liquidation for $22,500.
B)a credit to Cost of Goods Sold for $15,000.
C)a debit to Inventory for $70,000.
D)a debit to Inventory for $15,000.
Q2) Missoula Corporation disposed of one of its segments in the second quarter and incurred a gain from disposal of discontinued segment of $600,000,net of taxes.What is the effect of this gain from disposal of discontinued segment?
A)Increase net income from operations for the year by $600,000.
B)Increase second quarter net income by $600,000.
C)Increase each quarter's net income by $150,000.
D)Increase each of the last three quarters' net income by $200,000.
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/74490
Sample Questions
Q1) Which of the following classes of information are included in the Form 10-K?
I.Management's discussion and analysis
II.Audited financial statements and footnotes
III.Auditor's opinion on the company's internal control system
A)I and II
B)I and III
C)II and III
D)I,II,and III
Q2) Which system helps the SEC accomplish its primary purpose of increasing the efficiency and fairness of the securities markets by expediting the receipt,acceptance,dissemination,and analysis of time-sensitive data filed with it?
A)EDI
B)ESEC
C)EDGAR
D)EMMA
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.
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
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/74489
Sample Questions
Q1) Refer to the above information.Nancy is paid $84,000,and no goodwill is recorded.What is Lynn's capital balance after Nancy withdraws from the partnership?
A)$68,000
B)$54,000
C)$53,000
D)$52,000
Q2) Refer to the above information.Tiffany is paid $60,000,and no goodwill is recorded.What is the Ron's capital balance after Tiffany withdraws from the partnership?
A)$74,000
B)$71,000
C)$75,000
D)$86,000
Q3) Based on the preceding information,if no goodwill or bonus is recorded,how much should Daniel invest for a 20 percent interest?
A)$400,000
B)$200,000
C)$300,000
D)$250,000
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
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/74488
Sample Questions
Q1) 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.
Q2) Listen and Hear are thinking of dissolving their partnership.Listen has a friend who told him to complete a "lump-sum" liquidation.Hear wants to complete an "installment" liquidation.They have come to you for advice.What do you recommend and Why?
Q3) Based on the preceding information,the journal entry on the partnership's books to record the Investment in W&M Corporation Stock will be debited for:
A)$181,000
B)$131,000
C)$200,000
D)$150,000
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Governmental Entities: Introduction and General Fund Accounting
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/74487
Sample Questions
Q1) Assuming there is a budget surplus,which of the following accounts are credited when the general fund records its operating budget at the beginning of the year?
A)Appropriations Control and Budgetary Fund Balance-Unassigned.
B)Estimated Revenues Control and Estimated Residual Equity Transfer Out.
C)Budgetary Fund Balance-Assigned For Encumbrances and Expenditures.
D)Estimated Residual Equity Transfer Out and Estimated Transfer In.
Q2) 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.
Q3) The general fund of the City of Atlanta received a check for $10,000 from an Atlanta resident on July 1,20X8.Of the amount received,$4,800 represented full payment of property taxes for 20X8,and the remaining $5,200 represented an advance payment for property taxes of 20X9.On July 1,20X8,the general fund should record the receipt by debiting Cash for $10,000 and by crediting
A)Revenue-Property Tax for $10,000.
B)Property Taxes Receivable-Current for $4,800 and Deferred Revenue for $5,200.
C)Revenue-Property Tax for $4,800 and Deferred Revenue for $5,200.
D)Property Taxes Receivable-Current for $4,800 and Revenue-Property Tax for $5,200.
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Governmental Entities: Special Funds and Governmentwide Financial Statements
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/74486
Sample Questions
Q1) Agency funds report:
A)only assets and liabilities.
B)assets,liabilities,fund balance,revenues,and expenditures.
C)assets,liabilities,and fund balance.
D)only revenues and expenditures.
Q2) As of May 30,20X9,the debt service fund of Cody had accumulated $52,000 of assets in a debt service fund to pay the principal of its currently maturing serial bonds.On June 1,20X9,$50,000 of serial bonds matured and were paid with the resources accumulated in the debt service fund.In Cody's debt service fund,Matured Bonds Payable was debited for $50,000 and:
A)Cash was credited for $50,000.
B)Due to General Fund was credited for $50,000.
C)Investments were credited for $50,000.
D)Reserve for Encumbrances was credited for $50,000.
Q3) Enterprise and internal service funds should recognize revenues when they are
A)received in cash.
B)available and earned.
C)measurable and earned.
D)measurable and available.
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
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/74485
Sample Questions
Q1) A private university received $280,000 from student tuition and fees for the year 20X9 summer session.The session began on June 20,20X9,and ended on July 30,20X9.The university's fiscal year end is June 30.According to the AICPA College and University Audit Guide,how should the university report the $280,000 of receipts in its financial statements for the year ended June 30,20X9?
A)Current revenue of $280,000.
B)Current revenue of $70,000 and deferred revenue of $210,000.
C)Deferred revenue of $280,000.
D)Restricted current revenue of $280,000.
Q2) The disclosure,"net assets released from restrictions," is reported on which of the following financial statements for a voluntary health and welfare organization?
I.The statement of cash flows.
II.The statement of activities.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
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
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/74484
Sample Questions
Q1) Under a composition agreement,
A)creditors agree to accept less than the face amount of their claims.
B)debtors in financial difficulty transfer assets "without recourse."
C)a creditors' committee is initiated with a plan of settlement proposed by the debtor.
D)the debtor petitions for relief in a bankruptcy court.
Q2) 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.
Q3) Briefly explain the three classes of creditors specified in the Bankruptcy Code.
Q4) Chapter 11 of the Bankruptcy Code provides for:
I.Reorganization.
II.Liquidation.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Intercompany Indebtednessfully Adjusted
Equity Method Using Straight-Line Interest Amortization
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/74503
Sample Questions
Q1) 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
Q2) Portuguese owns 80 percent of the common stock of Spanish Company.Portuguese also purchases some of Spanish's bonds directly from Spanish and holds the bonds as a long-term investment.How is the acquisition of the bonds treated for consolidated reporting purposes?
A)As a retirement of bonds.
B)As an increase in the Bonds Payable account on Spanish's books.
C)Everything related to the intercompany bonds is eliminated in the consolidation worksheet,and nothing related to the bonds appears in the consolidated financial statements.
D)As an increase in noncurrent assets.
To view all questions and flashcards with answers, click on the resource link above.