Graduate Accounting Seminar
Solved Exam Questions
Course Introduction
The Graduate Accounting Seminar is an advanced course designed to deepen students understanding of contemporary accounting issues, research methodologies, and emerging trends in the field. Through a combination of case studies, scholarly articles, and seminar-style discussions, students critically analyze complex topics such as financial reporting, auditing standards, ethical considerations, and regulatory developments. The course emphasizes collaborative learning, effective communication of accounting information, and the integration of theoretical knowledge with practical applications, preparing students for leadership roles in academia, public accounting, and industry.
Recommended Textbook
Advanced Accounting 12th Edition by Paul M. Fischer
Available Study Resources on Quizplus
24 Chapters
1159 Verified Questions
1159 Flashcards
Source URL: https://quizplus.com/study-set/3584
Page 2
Chapter 1: Business Combinations: New Rules for a
Long-Standing Business Practice
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/71172
Sample Questions
Q1) Larry's Liquor acquired the net assets of Drake's Drinks in exchange for cash.The acquisition price exceeds the fair value of the net assets acquired.How should Larry's Liquor determine the amounts to be reported for the plant and equipment, and for long-term debt of the acquired Drake's Drinks?
\(\quad \)Plant and Equipment \(\quad \)Long-Term Debt
A)\(\quad \)Fair value\(\quad \)\(\quad \)\(\quad \)\(\quad \) \(\quad \)Drake's carrying amount
B)\(\quad \)?Fair value \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad
\)\(\quad \)Fair value
C)\(\quad \)?Drake's carrying amount\(\quad \) Fair value
D)\(\quad \)?Drake's carrying amount \(\quad \)Drake's carrying amount
Answer: B
Q2) A building materials company's acquisition of a television station would be an example of a:
A)market extension merger.
B)conglomerate merger.
C)product extension merger.
D)horizontal merger.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Consolidated Statements: Date of Acquisition
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71171
Sample Questions
Q1) On April 1, 2016, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation.The recorded assets and liabilities of the Simon Corporation on April 1, 2016, follow: \[\begin{array} { l r }
\text { Cash } & \$ 80,000 \\
\text { Inventory } & 240,000 \\
\text { Property and equipment (net of accumulated depreciation of } \$ 320,000 ) & 480,000 \\
\text { Liabilities } & ( 180,000 ) \end{array}\] On April 1, 2016, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000.The entry to distribute the excess of fair value over book value will include:
A)A debit to inventory of $50,000
B)A credit to the investment in Simon Corporation of $620,000
C)A debit to goodwill of $330,000
D)A credit to the investment in Simon Corporation of $330,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Consolidated Statements: Subsequent to Acquisition
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/71170
Sample Questions
Q1) The method of accounting for subsidiaries that is required for influential investments is the
A)cost method.
B)simple equity method.
C)investment method.
D)sophisticated equity method.
Answer: D
Q2) What is the effect if an unconsolidated subsidiary is accounted for by the equity method but consolidated statements are being prepared for the parent company and other subsidiaries?
A)All of the unconsolidated subsidiary's accounts will be included individually in the consolidated statements.
B)The consolidated retained earnings will not reflect the earnings of the unconsolidated subsidiary.
C)The consolidated retained earnings will be the same as if the subsidiary had been included in the consolidation.
D)Dividend revenue from the unconsolidated subsidiary will be reflected in consolidated net income.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Intercompany Transactions: Merchandise, Plant
Assets, and Notes
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/71169
Sample Questions
Q1) Phelps Co.uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp.At the time of the acquisition, the fair values of the net asset required approximated their book values.Based upon the following information, what amount does Phelps Co.record as subsidiary income \(\begin{array}{lr}
\text { Phelps internally generated income: } & \$ 250,000 \\
\text { Shore internally generated income: } & \$ 50,000 \\
\text { Intercompany profit on Shore beginning inventory: } & \$ 10,000 \\
\text { Intercompany profit on Shore ending inventory: } & \$ 15,000 \end{array}\)
A)$50,000
B)$44,000
C)$40,000
D)$36,000
Q2) Which of the following should appear in consolidated financial statements?
A)All intercompany transactions properly recorded on each affiliate's books.
B)Transactions between the consolidated company and outside parties.
C)Transactions not accounted for by the simple equity method.
D)Lease transactions between a parent and subsidiary.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Intercompany Transactions: Bonds and Leases
Available Study Resources on Quizplus for this Chatper
54 Verified Questions
54 Flashcards
Source URL: https://quizplus.com/quiz/71168
Sample Questions
Q1) Elimination procedures for intercompany bonds purchased from outside parties by another member of the consolidated group are:
A)not needed except in the period of acquisition if purchased at par.
B)not needed except in the period of acquisition if purchased at a premium or discount.
C)not needed except in the period of acquisition if only a portion of the outstanding bonds are purchased.
D)needed each period as long as the intercompany investment in bonds exists.
Q2) The motivation of a parent company to purchase the outstanding bonds of a subsidiary could be to:
A)replace the existing debt with new debt at a lower interest rate.
B)reduce the parent company's acquisition price for the subsidiary.
C)increase the parent company's ownership percentage in the subsidiary.
D)create interest revenue to offset interest expense in future income statements.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Cash Flow, Eps, and Taxation
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/71167
Sample Questions
Q1) Because good will is amortized over 15 years for tax purposes, but is not amortized for financial reporting:
A)impairment of goodwill will result in a deferred tax liability.
B)there are no deferred tax implications.
C)a deferred tax liability results from amortization which will not be utilized until goodwill is impairment adjusted or the company is later sold.
D)a subsidiary will include any goodwill amortization the parent deducts in its taxable income.
Q2) Dividends paid by a subsidiary have the following effect on the consolidated cash flow
A)all dividends to the parent and to non-controlling stockholders appear on the statement.
B)only dividends to the parent appear on the statement.
C)only dividends to NCI appear on the statement.
D)neither dividends to the parent or to non-controlling stockholders appear on the statement
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Special Issues in Accounting for an Investment
in a Subsidiary
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/71166
Sample Questions
Q1) A subsidiary company may have preferred stock as part of its equity structure.Further, suppose that the preferred stock is cumulative and in arrears on dividends.
? Required: ?
a.What is the impact of the preferred stock on the excess of cost over book value on the original controlling investment in common stock? ? ?
b.What is the impact of the preferred stock on the annual distribution of income? ? ?
c.What is the theory followed in consolidated reporting when the parent purchases a portion of the subsidiary's preferred stock? ?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Subsidiary Equity Transactions, Indirect
Subsidiary Ownership, and Subsidiary Ownership of Parent Shares
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71165
Sample Questions
Q1) Which of the following situations is viewed as the parent having treasury stock?
A)A owns 80% of B, and B owns 70% of C.
B)A owns 80% of B and 20% of C; B owns 70% of C.
C)A owns 80% of B, and B owns 20% of A.
D)None of the above.
Q2) Plum Inc.acquired 90% of the capital stock of Sterling Co.on 1/1/16 at a cost of $540,000.On this date Sterling had equipment (10-year life) carried at $200,000 under market and total equity amounting to $350,000.
On 1/1/16 Sterling acquired 5% (10,000 shares) of Plum's outstanding common stock for $3 per share.Internally generated net income was $50,000 for Plum and $40,000 for Sterling.The non-controlling interest in consolidated net income is
A)$2,000
B)$18,000
C)$7,500
D)$6,800
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: The International Accounting Environment
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/71164
Sample Questions
Q1) Explain the goal of harmonization of accounting standards.Why is this so important to multinational companies?
Q2) RWB Corporation, a U.S.based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros.The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros.RWB's measurement currency is the U.S.dollar.RWB Corporation:
A)should record the inventory for $9,600.
B)is exposed to an economic loss on the transaction.
C)has an economic gain on the transaction.
D)should record the inventory for 12,000 euros.
Q3) RWB Corporation, a U.S.based company, sold inventory to a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros.The company received 12,000 euros in payment on August 4 when $1 was equal to 1.25 euros.RWB's measurement currency is the U.S.dollar.RWB Corporation:
A)should record the sale for $9,600.
B)is exposed to an economic loss on the transaction.
C)has an economic gain on the transaction.
D)should record the sale for 12,000 euros.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Foreign Currency Transactions
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/71163
Sample Questions
Q1) On 7/1, a company forecasts the purchase of 10,000 units of inventory from a foreign vendor.The forecasted cost is estimated to be 150,000 FC.It is estimated inventory will be delivered 11/1.Also, on 7/1, the company purchased a call option to buy 150,000 FC at a strike price of $0.60 anytime during October.An option premium of $2,000 was paid.
? ? \[\begin{array} { l c c c c } & \text { July 1 } & \text { July 31 } & \text { August 31 } & \text { October 1 } \\ \text { Spot } & \$ 0.58 & \$ 0.61 & \$ 0.63 & \$ 0.635 \\ \text { Fair Value of Option } & \$ 2,000 & \$ 2,500 & \$ 5,100 & \$ 5,500
\end{array}\] Required:
? Prepare the journal entries required through 10/1.
Q2) For a hedge on an exposed position, describe the process of valuing the forward contract as of the fiscal period end date.
Q3) Describe the risks and uncertainty a U.S.company faces when purchasing goods from a foreign corporation and settling the transaction in the foreign currency.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Translation of Foreign Financial Statements
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/71162
Sample Questions
Q1) If a subsidiary's functional currency is not the local currency in which it operates, but the parent's reporting currency:
A)the foreign subsidiary's translated financial statements are identical to the statements that would have resulted if the transactions had been recorded in dollars.
B)the translation adjustment is recorded as a component of other comprehensive income.
C)there is no indication that exchange rate changes will impact the subsidiary's or the parent's cash flows or equity.
D)None of the above is correct.
Q2) List the two primary objectives of translating foreign financial statements according to the FASB #52, which emphasizes the concept of the functional currency.?
Q3) The translation (re-measurere-measurement) adjustment reported in a translation when the functional currency is not the foreign currency is included
A)as a separate component of other comprehensive income
B)in the current liability section of the balance sheet as deferred revenue
C)in the calculation of net income
D)none of the above
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Interim Reporting and Disclosures About
Segments of an Enterprise
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/71161
Sample Questions
Q1) Ansfield, Inc.has several potentially reportable segments.The following financial information has been determined for the current fiscal year: ?
\[\begin{array} { l r }
\text { Consolidated net income } & \$ 1,000,000 \\
\text { Operating income before taxes } & 1,500,000 \\
\text { Net operating income of all segments } & 1,350,000 \\
\text { Total consolidated revenue } & 8,000,000 \\
\text { Total revenue of all segments, } & \\
\text { excluding intersegment sales } & 7,000,000 \\
\text { Total intersegment sales } & 1,200,000 \\
\text { Consolidated total assets } & 50,000,000 \\
\text { Total assets of all segments } & 45,000,000
\end{array}\] The minimum amount of assets a segment must have to qualify as reportable is ____.
A)$4,500,000
B)$5,000,000
C)$37,500,000
D)The answer cannot be determined from the information given.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Partnerships: Characteristics, Formation, and
Accounting for Activities
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71160
Sample Questions
Q1) J & K are forming a partnership.J is investing a building that has a market value of $80,000.However, the building carries a $45,000 mortgage that will be assumed by the partnership.K is investing $20,000 cash.The balance of J's capital is
A)$25,000
B)$35,000
C)$45,000
D)$125,000
Q2) Partners Y & Z each had $75,000 of capital on December 31.The partnership agreement calls for a profit and loss distribution of 10% on invested capital at the beginning of the year.Assuming a net income of $100,000 what would the distribution be for both partners?
A)Undetermined
B)$7,500
C)$15,000
D)Y would receive $7500 and Z would receive $15,000
Q3) S & T form a partnership with $30,000 and $90,000 respectively.Their article of copartnerhsip call for the net income distribution based on initial investment.What would partner S share of net income be under this provision assuming net income was $50,000?
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Partnerships: Ownership Changes and Liquidations
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/71173
Sample Questions
Q1) A, B and C have capital of $120,000, $70,000, and $60,000 respectively.The partners share profit and loss in the agreed ratio of 40/30/30.D joins the partnership with $80,000 in exchange for 20% interest in capital and 20% interest in profit and loss.The existing assets of the original partnership are undervalued by $40,000.The original partners share balance of profit and loss in proportion to the original percent. ?
Instructions: Calculate the capital balances for each individual in the new partnership assuming bonus and good will method:
Q2) When a new partnership is formed and Goodwill is recognized what should follow: A)Nothing
B)Re- evaluation of net assets
C)Distribution of cash
D)Increase all partners' capital
Q3) Compare and contrast the Bonus method and Goodwill method of in admitting a new partner to a partnership
Q4) Describe the order in which assets must be distributed upon liquidation of a partnership
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Government and Not for Profit Accounting
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71159
Sample Questions
Q1) Record the following journal entries: ?
Encumbrance of $1,000,000 ARE MADE
Vouchers are approved liquidating $900,000 of encumbrances as follows:
Supplies ..$305,000
Building .$575,000
Other Expense $35,000
Q2) A difference in reporting on the balance sheet for a for profit business and a Not for profit entity is that current assets and current liabilities are reported in the for profit sector and the parallel accounts in not for profit are found in:
A)Deferred accounts
B)Fund accounts
C)Donations
D)Net assets
Q3) The difference between assets and liabilities in a governmental unit is called:
A)Equity
B)Governmental equity
C)Fund Balance
D)Distributive Cash Flow
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Governmental Accounting: Other
Governmental Funds, Proprietary Funds, and Fiduciary Funds
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/71158
Sample Questions
Q1) If a county collects taxes on behalf of the city and school district, it would record the taxes in the
A)General Fund.
B)Special Revenue Fund.
C)Agency Fund.
D)Trust Fund.
Q2) In a Special Revenue Fund, sufficient revenue should exist to fund the activities, but funds should not accumulate beyond reasonable needs.
A)True
B)False
Q3) The City of Newport operates its own solid waste landfill and charges fees to users who dump solid waste in the landfill.When should estimated costs for closure and post-closure care be accounted for?
Q4) Capital improvement special assessments:
A)may include contributions from property owners.
B)are accounted for through a capital projects fund.
Page 18
C)may include debt accounted for in an agency fund if the government has no obligation for it.
D)All of the above.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Financial Reporting Issues
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/71157
Sample Questions
Q1) Major funds are described as
A)the general fund and enterprise funds
B)at least 5% of all government and enterprise funds combined
C)those in which assets, liabilities, revenues, or expenditures are at least 10% of all funds in that type.
D)all of the above
Q2) Which of the following is not a category included in the statistical section of government's audit report?
A)Revenue capacity information.
B)Asset capacity information.
C)Demographic and economic information.
D)Financial trends information.
Q3) GASB Statement No.34 requires the reporting for infrastructure assets.Special provisions for reporting include
A)mandatory straight line depreciation on all infrastructure assets
B)depreciation should not be recorded on any infrastructure assets
C)small government units do not have to report on infrastructure assets now or in the future
D)allowing various approaches to estimating infrastructure costs
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Accounting for Private Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/71156
Sample Questions
Q1) A temporary restriction expires when:
A)the stipulated time has elapsed.
B)the stipulated purpose has been fulfilled.
C)the useful life of donated assets has ended.
D)All of the above.
Q2) A CPA donates her services to prepare the annual financial report for a voluntary health and welfare organization.The services should be recorded as:
A)revenues-unrestricted.
B)accounting expenses.
C)a footnote disclosure in the financial report.
D)both a and b are correct.
Q3) The American Heart Association is having its annual Heart Ball.The ball is an on-going event and a major annual event for the association.Any promotional costs of the ball are considered:
A)Cost of Special Events
B)Operating Expenses
C)Fund Raising Expenses
D)None of the above
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Accounting for Not-For-Profit Colleges and Universities and Health Care Organizations
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/71155
Sample Questions
Q1) Currently, which organization has jurisdiction over accounting and reporting standards for private colleges and universities?
A)National Association of College and University Business Officers
B)the Governmental Accounting Standards Board
C)the Financial Accounting Standards Board
D)the U.S.Department of Education
Q2) Which of the following is a category of health care entity?
A)Proprietary entity.
B)Voluntary not-for-profit entity.
C)Public entity.
D)All of the above.
Q3) Which of the following represents an area where accounting for contributions may differ between public and private colleges and universities?
A)Works of art and historic treasures
B)Donated services
C)Conditional pledges
D)None of the above
Q4) How has the adoption of GASB Statement No.35 changed the reporting standards for colleges and universities.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Estates and Trusts: Their Nature and the
Accountants Role
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/71154
Sample Questions
Q1) Which of the following items is not included in the estate principal subsequent to the date of death?
A)Assets discovered after the date of death
B)Gains on the sale of principal assets
C)Losses on the sale of principal
D)All affect the estate principal.
Q2) The primary purpose of an estate's charge and discharge statement is to detail
A)cash flow as to principal and as to income.
B)income and expenses of the estate.
C)transactions affecting principal and income.
D)the profit or loss during the period of stewardship.
Q3) The marital deduction is allowed for the value of qualifying property passing to a surviving spouse, but it may defer estate taxes only until the death of the surviving spouse.
A)True
B)False
Q4) A charitable remainder trust splits assets between a surviving spouse and a trust.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Debt Restructuring, Corporate Reorganizations, and Liquidations
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/71153
Sample Questions
Q1) Which of the following is not a general objective of bankruptcy procedures?
A)assurance that all obligations of the debtor will be satisfied completely
B)attempt to give the debtor a fresh start
C)assurance of an equitable distribution of the debtor's property among creditors
D)None of the above is a general objective.
Q2) Land and buildings having a book value of $150,000 and a fair value of $185,000 are transferred to a creditor in a troubled debt restructuring to fully settle a loan of $200,000 plus accrued interest of $3,000.What is the amount of the gain on restructuring?
A)$35,000
B)$53,000
C)$15,000
D)$18,000
Q3) The Accounting Statement of Affairs is a report on the activities of the trustee made periodically to the bankruptcy court.
A)True
B)False
Q4) Describe the duties of the trustee in a Chapter 7 liquidation.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Derivatives and Related Accounting Issues
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/71152
Sample Questions
Q1) Identify the various types of information that should be included in disclosures regarding derivative instruments and hedging.
Q2) On August 1st of the current year, Lenz Company writes a contract agreeing to sell to Hindman Company 15,000 British pounds at a specific price of $0.69 per pound with delivery in 60 days.Throughout the 60-day period the forward rate varies as follows: ?
\(\begin{array}{ll}
60 \text { days remaining on the contract } & \$ 0.69 \\
30 \text { days remaining on the contract } & \$ 0.68 \\
0 \text { days remaining on the contract } & \$ 0.675 \end{array}\)
Assume an 8% discount rate for Lenz Company and Hindman Company.For the first 30 day period, Lenz Company would recognize a:
A)$149 loss.
B)$149 gain.
C)$150 loss.
D)$150 gain.
To view all questions and flashcards with answers, click on the resource link above.
Page 24
Chapter 23: Equity Method for Unconsolidated Investments
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71151
Sample Questions
Q1) On January 1, 20X1, Company P purchased a 30% interest in the Company S for $345,000.At that time, Company S had stockholders' equity of $1,000,000.Any excess cost over book value was attributed to a patent with a 15-year life.During 20X1, Company S earned $60,000 and paid dividends of $15,000.What is the balance in the investment account on December 31, 20X1, using the sophisticated equity method?
A)$363,000
B)$360,000
C)$355,500
D)$349,500
Q2) If the market value of an equity method investment falls below its book value: A)it is accounted for at the lower of cost or market so an adjustment is made whenever this occurs.
B)it is written down, but when the value rebounds, it is readjusted to its original value. C)it is written down if the decline is considered permanent in nature with no subsequent increase in value.
D)it is written down if the decline is considered permanent in nature with no subsequent increase in value other than regular equity method adjustments.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Variable Interest Entities
Available Study Resources on Quizplus for this Chatper
10 Verified Questions
10 Flashcards
Source URL: https://quizplus.com/quiz/71150
Sample Questions
Q1) The accounts of the VIE are adjusted to fair value on the date control is achieved.
A)True
B)False
Q2) If the VIE was not a business as de ned by ASC 819-10-20 which means it is likely a not for pro t entity, there is no goodwill recorded.
A)True
B)False
Q3) In a VIE, the majority of losses or income ow to the primary bene ciaries, not the residual interest shareholders shareholder.The distribution of income is not based on common stock ownership.Instead, it is based on contractual agreements that could include interest on loans, management fees or a de ned percentage of revenue or income.
A)True B)False
Q4) The entity having control of a VIE is referred to as the parent company.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.