International Accounting
Chapter Exam Questions
Course Introduction
International Accounting explores the principles and practices of accounting in a global context, emphasizing the differences in accounting standards, regulations, and practices across countries. The course covers topics such as the harmonization of international accounting standards, the role of the International Financial Reporting Standards (IFRS), the impact of cross-border transactions, foreign currency translation, international financial statement analysis, and the ethical considerations facing multinational corporations. Through case studies and real-world examples, students develop an understanding of how global economic, legal, and cultural environments shape accounting practices and learn to analyze and interpret financial information prepared under various international frameworks.
Recommended Textbook
Advanced Accounting 11th Edition by Floyd A. Beams
Available Study Resources on Quizplus 23 Chapters
892 Verified Questions
892 Flashcards
Source URL: https://quizplus.com/study-set/3589
Page 2
Chapter 1: Business Combinations
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71270
Sample Questions
Q1) With respect to goodwill, an impairment
A) will be amortized over the remaining useful life.
B) is a two-step process which analyzes each business reporting unit of the entity.
C) is a one-step process considering the entire firm.
D) occurs when asset values are adjusted to fair value in a purchase.
Answer: B
Q2) Following the accounting concept of a business combination, a business combination occurs when a company acquires an equity interest in another entity and has
A) at least 20% ownership in the entity.
B) more than 50% ownership in the entity.
C) 100% ownership in the entity.
D) control over the entity, irrespective of the percentage owned.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Stock Investments Investor Accounting and Reporting
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71269
Sample Questions
Q1) On January 2, 2010, Slurg Corporation paid $600,000 to acquire 20% interest in Padwaddy Inc.At that time, the book value of Padwaddy's stockholders' equity included $700,000 of common stock and $1,800,000 of retained earnings.All the excess purchase cost over the book value acquired was attributable to a patent with an estimated life of 10 years.Padwaddy paid $6,250 of dividends each quarter for the next two years, and reported net income of $180,000 for 2010 and $220,000 for 2011.Slurg recorded all activities related to their investment using the equity method. Required:
1.Calculate Slurg's income from Padwaddy for 2010.
2.Calculate Slurg's income from Padwaddy for 2011.
3.Determine the balance of Slurg's Investment in Padwaddy account on December 31, 2011.
Answer: 11ea87ae_6166_877b_8726_51e3633efc90_TB2662_00
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: An Introduction to Consolidated Financial Statements
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71268
Sample Questions
Q1) A newly acquired subsidiary had pre-existing goodwill on its books.The parent company's consolidated balance sheet will
A) not show any value for the subsidiary's pre-existing goodwill.
B) treat the goodwill similarly to other intangible assets of the acquired company.
C) not show any value for the pre-existing goodwill unless all other assets of the subsidiary are stated at their full fair value.
D) always show the pre-existing goodwill of the subsidiary at its book value.
Answer: A
Q2) What method must be used if FASB Statement No.94 prohibits full consolidation of a 70% owned subsidiary?
A) The cost method
B) The Liquidation value
C) Market value
D) Equity method
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Consolidated Techniques and Procedures
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/71267
Sample Questions
Q1) Which one of the following will increase consolidated retained earnings?
A) An increase in the value of goodwill associated with a subsidiary subsequent to the parent's date of acquisition
B) The amortization of a $10,000 excess in the fair value of a note payable over its recorded book value
C) The depreciation of a $10,000 excess in the fair value of equipment over its recorded book value
D) The sale of inventory by a subsidiary that had a $10,000 excess in fair value over recorded book value on the parent's date of acquisition
Q2) A parent corporation owns 55% of the outstanding voting common stock of one domestic subsidiary.The parent has control over the subsidiary.Which of the following statements is correct?
A) The parent corporation must prepare consolidated financial statements for the economic entity.
B) The parent corporation must use the fair value method.
C) The parent company may use the equity method but the subsidiary cannot be consolidated.
D) The parent company can use the equity method or the fair value/cost method.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Intercompany Profit Transactions - Inventories
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71266
Sample Questions
Q1) Salli Corporation regularly purchases merchandise from their 90%-owner, Playtime Corporation.Playtime purchased the 90% interest at a cost equal to 90% of the book value of Salli's net assets.At the time of acquisition, the book values and fair values of Salli's assets and liabilities were equal.Playtime makes their sales to Salli at 120% of cost.In 2012, Salli reported net income of $460,000, and made purchases totaling $172,000 from Playtime.Although Salli had no inventory on hand at the beginning of 2012 that they had purchased from Playtime, at year end, they had $51,600 of this merchandise in inventory.
Required:
1.Determine the unrealized profit in Salli's inventory at December 31, 2012. 2.Compute Playtime's income from Salli for 2012.
Q2) If the sale referred to above was a downstream sale, the total sales revenue reported in the consolidated income statement for 2011 would be A) $870,000.
B) $880,000.
C) $920,000.
D) $970,000.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Intercompany Profit Transactions - Plant Assets
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71265
Sample Questions
Q1) Controlling interest share in consolidated net income for 2012 was
A) $121,000.
B) $125,000.
C) $131,000.
D) $143,000.
Q2) On January 2, 2012, Pal Corporation sold warehouse equipment to SimCo, a wholly-owned subsidiary.The equipment had an original cost of $130,000 and a net book value of $100,000 when it was sold to SimCo for $150,000.Both companies agreed that the equipment had a five-year remaining life and compute depreciation on the straight-line method.The equipment has no salvage value. Pal reported $470,000 in net income in 2012 (prior to reporting any income from SimCo), and SimCo reported $160,000 in net income.
Required:
1.Calculate consolidated net income for 2012.
2.Determine the controlling share of net income for the year if Pal only owned 75% of SimCo.
3.Determine the controlling share of net income for the year if Pal only owned 75% of SimCo AND the equipment transfer was upstream.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Intercompany Profit Transactions - Bonds
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71264
Sample Questions
Q1) Prussia Corporation owns 80% the voting stock of Stad Corporation.On January 1, 2010, Prussia paid $391,000 cash for $400,000 par of Stad's 10% $1,000,000 par value outstanding bonds, due on April 1, 2015.Stad's bonds had a book value of $1,045,000 on January 1, 2010.Straight-line amortization is used.The gain or loss on the constructive retirement of $400,000 of Stad bonds on January 1, 2010 was reported in the 2010 consolidated income statement in the amount of
A) $14,000.
B) $21,600.
C) $23,000.
D) $27,000.
Q2) The gain from the bond purchase that appeared on the December 31, 2010 consolidated income statement was
A) $4,320.
B) $4,800.
C) $5,400.
D) $6,000.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Consolidations - Changes in Ownership
Interests
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/71263
Sample Questions
Q1) On September 1, 2011, Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000.Johnsen's stockholders' equity at January 1, 2011 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings.The book values of its assets and liabilities were equal to their respective fair values on this date.All excess purchase cost was attributed to goodwill.
During 2011, Johnsen uniformly earned $78,000 and paid dividends of $9,000 on each of four dates: February 1, June 1, August 1, and December 1.
Required: Compute the following:
1.Implied goodwill associated with Johnsen Corporation based on Beck's purchase price on September 1, 2011.
2.Beck's income from Johnsen for 2011.
3.Preacquisition income for Beck Corporation and Subsidiary for 2011.
4.Noncontrolling interest share for 2011.
5.What is the balance in Beck's Investment in Johnsen account at December 31, 2011?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Indirect and Mutual Holdings
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/71262
Sample Questions
Q1) Raymond Company owns 90% of Rachel Company.Rachel Company owns 10% of Raymond Company.The treasury stock method is used.On the books of Rachel Company, we maintain the Investment in Raymond using the ________ method.The ending balance in Investment in Raymond is ________ stockholders' equity in the consolidated balance sheet.
A) equity; deducted from B) cost; deducted from C) treasury stock; deducted from D) conventional; added to
Q2) Controlling interest share of consolidated net income for the current year is A) $504,800.
B) $516,800.
C) $545,200.
D) $557,200.
Q3) Noncontrolling interest share for Achille is
A) $18,000.
B) $25,200.
C) $36,200.
D) $72,000.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Subsidiary Preferred Stock, Consolidated
Earnings Per Share, and Consolidated Income Taxation
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71261
Sample Questions
Q1) Parker Corporation owns an 80% interest in Sample Corporation's common stock.Throughout 2010, Sample had 10,000 shares of common stock outstanding and Parker had 100,000 shares of common stock outstanding.Sample's only dilutive security consists of $50,000 face amount of 8% bonds payable.Each $1,000 bond is convertible into 20 shares of Sample stock.Parker and Sample's separate incomes for the year are $100,000 and $75,000, respectively.Assume a 34% flat income tax rate.
Required:
Compute the amount of basic and diluted earnings per share for Parker (Consolidated)and Sample Corporations.
Q2) How much should the Parminter's Investment in Sanchez-Common Stock, change during 2011?
A) $5,000
B) $20,000
C) $25,000
D) $30,000
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Consolidation Theories, Push-Down Accounting, and Corporate Joint Ventures
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71260
Sample Questions
Q1) On January 1, 2011, Parton Corporation acquired an 80% interest in Sandra Corporation for $184,000.Sandra's net assets on this date had a book value of $160,000 and a fair value of $210,000.The excess of fair value over book value at acquisition was attributable to $20,000 of understated plant assets with a remaining useful life of five years from January 1, 2011, and $30,000 to an understated patent with a remaining economic life of six years from January 1, 2011.Separate net incomes (excluding investment income)of Parton and Sandra for 2011 were $300,000 and $50,000, respectively.
Required:
1.Compute goodwill at January 1, 2011 under the parent company theory and the entity theory.
2.Determine consolidated net income and noncontrolling interest share for 2011 under the parent company theory and the entity theory.
Q2) Under the entity theory, what amount of goodwill was reported on the consolidated balance sheet at December 31, 2011?
A) $185,000
B) $191,250
C) $193,000
D) $200,000
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Derivatives and Foreign Currency: Concepts and Common Transactions
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71259
Sample Questions
Q1) Gains or losses on foreign currency transactions are recorded before the related receivable or payable is settled when
A) the government cannot set an exchange rate for the foreign currency.
B) the foreign currency is unknown.
C) the fiscal year ends after the settlement of the receivable or payable.
D) the fiscal year ends before the settlement of the receivable or payable.
Q2) What exchange gain or loss appeared on Sooty's 2010 income statement?
A) a loss of $10,000
B) a loss of $15,000
C) a gain of $10,000
D) a gain of $15,000
Q3) If a sale on account by a U.S.company is made with a foreign company, and the U.S.company has no foreign currency risk, then
A) the U.S. company has measured the transaction in US dollars.
B) the U.S. company has denominated the transaction in US dollars.
C) the foreign company has measured the transaction in their own currency.
D) the foreign company has denominated the transaction in their own currency.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Accounting for Derivatives and Hedging
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71258
Sample Questions
Q1) If a financial instrument is classified as a cash flow hedge, then
A) its gains or losses are reported in the income statement if a fiscal year-end occurs before the settlement date.
B) it is classified as a held-to-maturity asset.
C) it does not require a notional amount.
D) its gains or losses are reported in the balance sheet if a fiscal year-end occurs before the settlement date.
Q2) The purchase price of an option contract is typically recorded as
A) an expense.
B) an asset.
C) an amortized cost.
D) a component of shareholders equity.
Q3) Which of the following is not an approach appropriate for hedge accounting?
A) Cash Flow Hedge Accounting
B) Critical Term Hedge Accounting
C) Fair Value Hedge Accounting
D) Hedge of Net Investment in Foreign Subsidiary
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Foreign Currency Financial Statements
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71257
Sample Questions
Q1) Which of the following statements about the Current Rate method is false?
A) Translation involves restating the functional currency amounts into the reporting currency.
B) All assets and liabilities are translated at the current rate.
C) If the subsidiary maintains their books in their functional currency, the current rate method is used.
D) The effect of exchange rate changes are reported on the income statement as a foreign exchange gain or loss.
Q2) Exchange gains or losses from remeasurement appear
A) in the continuing operations section of the consolidated income statement.
B) as an extraordinary item on the consolidated income statement.
C) as other comprehensive income typically reported in a statement of stockholders' equity.
D) as an adjustment to the beginning balance of retained earnings on the consolidated Statement of retained earnings.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Segment and Interim Financial Reporting
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71256
Sample Questions
Q1) Which one of the following operating segment information items is not directly named by GAAP to be reconciled to consolidated totals?
A) Assets
B) Liabilities
C) Revenues
D) Profit or loss
Q2) The estimated taxable income for Shebill Corporation on January 1, 2011, was $80,000, $100,000, $100,000, and $120,000, respectively, for each of the four quarters of 2011.Shebill's estimated annual effective tax rate was 30%.During the second quarter of 2011, the estimated annual effective tax rate was increased to 34%.Given only this information, Shebill's second quarter income tax expense was
A) $30,000.
B) $34,000.
C) $37,200.
D) $61,200.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Partnerships - Formation, Operations, and Changes in Ownership Interests
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71255
Sample Questions
Q1) On July 1, 2011, Joe, Kline, and Lama began a partnership in which Joe and Kline each contributed cash of $200,000; and Lama contributed property with a fair value of $100,000 and a tax basis $150,000.Joe receives a 10% bonus of partnership income.Kline and Lama receive salaries of $40,000 each.The partnership agreement of Joe, Kline, and Lama provides that all partners receive 5% interest on capital and that profits and losses of the remaining income be distributed to Joe, Kline, and Lama by a 1:1:3 ratio.
Required:
Prepare a schedule to distribute $225,000 of partnership net income to the partners.
Q2) Required:
1.Prepare a schedule to allocate income to the partners assuming that partnership net income for 2011 is $330,000.
2.Prepare a journal entry to distribute the partnership's income to the partners (assume that an Income Summary account is used by the partnership).
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Partnership Liquidation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71254
Sample Questions
Q1) What is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account?
A) The loan is ignored in liquidation.
B) The loan is offset against the debit balance in the capital account.
C) The loan is charged off to the capital accounts of all the partners in their profit and loss sharing ratios.
D) The loan is held for payment after all other capital accounts are covered.
Q2) Using a safe payments schedule, how much cash should Melvin receive in the first distribution?
A) $ 81,000
B) $165,000
C) $168,600
D) $202,500
Q3) The book value of the partnership equity (i.e., total equity of the partners)on June 30, 2011 is
A) $ 58,000.
B) $ 60,000.
C) $ 84,000.
D) $120,000.
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Corporate Liquidations and Reorganizations
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/71253
Sample Questions
Q1) Which condition must be met for fresh-start reporting for an emerging company from Chapter 11?
A) Holders of existing voting shares immediately before confirmation of the reorganization plan must receive more than fifty percent of the emerging entity.
B) The loss of control by voting shareholders must be temporary.
C) The reorganization value of the emerging entity's assets immediately before the date of the confirmation of the reorganization plan must be less than the total of all postpetition liabilities and allowed claims.
D) The fresh-start entity must have a deficit.
Q2) Rank the following claims 1 through 5, with 1 being the first priority claim, under Chapter 7 of the bankruptcy code.
_____ A.Trustee fees for administration of the estate.
_____ B.Accounts payable for goods delivered prior to filing an involuntary petition for bankruptcy
_____ C.Customer deposits for services never rendered.
_____ D.First mortgage on the company's real estate.
_____ E.Income taxes owed for the prior year.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: An Introduction to Accounting for State and Local Governmental Units
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/71252
Sample Questions
Q1) The following are transactions for the city of Franklin.
a.Borrowed $20,000 by issuing a two-year note.
b.Purchased equipment for $6,000 cash.
c.Licenses for $700 were billed on account.
d.Accrued employee salary costs of $7,000.
e.Depreciation expense on equipment for year, $1,000.
Required:
Analyze the above transactions by using the accounting equation for a proprietary fund.
Q2) The following are transactions for the city of Clinton.
a.Borrowed $100,000 by issuing a one-year, 5% note, three months before year-end.
b.Accrued interest at year end, but did not pay the interest at year end.
c.Charges for services rendered of $2,500 were billed and collected immediately.
d.Incurred salary costs of $5,000, unpaid.
Required:
Analyze the above transactions by using the accounting equation for a governmental fund.
To view all questions and flashcards with answers, click on the resource link above.
21
Chapter 20: Accounting for State and Local Governmental Units
- Governmental Funds
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/71251
Sample Questions
Q1) 1.Urban City issued $6 million of general obligation bonds at par to finance the construction of a city building.The bonds are 6%, 10-year bonds, and interest is paid on June 30 and December 31.
2.The city transferred $3,600,000 from its General Fund to its Debt Service Fund to provide a portion of the resources needed to service the bonds.
3.The city paid the first interest payment to the bondholders. Required:
Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by the city of Urban.
Q2) The General Fund transfers $50,000 cash to the Debt Service Fund to meet annual interest payments.What entry did the Debt Service Fund prepare?
A) Debit Cash $50,000, Credit Revenue $50,000
B) Debit Cash $50,000, Credit Other Financing Sources-Transfer from General Fund $50,000
C) Debit Encumbrance $50,000, Credit Due to General Fund $50,000
D) Debit Appropriation $50,000, Credit Reserve for Encumbrance $50,000
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Accounting for State and Local Governmental Units
- Proprietary and Fiduciary Funds
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71250
Sample Questions
Q1) Proceeds from bonds issued for the construction of capital assets are classified on the Statement of Cash Flows for an Enterprise Fund as
A) Cash Flows from Operating Activities.
B) Cash Flows from Noncapital Financing Activities.
C) Cash Flows from Capital and Related Financing Activities.
D) Cash Flows from Investing Activities.
Q2) What basis of accounting is used by proprietary funds?
A) Modified accrual accounting
B) Accrual accounting
C) Cash basis accounting
D) Fair value accounting
Q3) The trust fund for a school library is required to prepare financial statements that include
A) Balance Sheet and Income Statement.
B) Statement of Revenues, Expenses and Changes in Fiduciary Net Assets.
C) Statement of Fund Balance and Statement of Changes in Fund Balance.
D) Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 22: Accounting for Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71249
Sample Questions
Q1) The following information is available about the operations for a private, not-for-profit university.
1.The university sold $20,000,000 of 5% bonds to finance the construction of a new building for the business school.The bonds were sold on January 1 and pay interest on December 31 of each year.The bonds were sold at par and mature in 20 years.
2.The university received $7,500,000 cash in alumni and corporate donations for the new business school building.
3.The building was constructed at a total cost of $22,000,000 and the contractor was paid in full.
4.Interest was paid on the bonds.
5.Depreciation on the new building the first year was $275,000.
Required:
Prepare the appropriate journal entries for the university for these transactions.
Q2) Voluntary health and welfare organizations must report expenses classified by A) restriction.
B) function and natural classification.
C) restriction and natural classification.
D) restriction, function and natural classification.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Estates and Trusts
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71248
Sample Questions
Q1) Under the amended Uniform Probate Code, if the decedent dies intestate, and if there are descendants from a prior marriage or relationship, the surviving spouse receives what?
A) $25,000 and 2/3 of the remaining intestate estate
B) $200,000 and 1/3 of the remaining intestate estate
C) $50,000 and 1/2 of the remaining intestate estate
D) $100,000 and 1/2 of the remaining intestate estate
Q2) The executor or administrator of a will is required to prepare and file an inventory of property owned by the deceased within what time period?
A) One month of appointment
B) Two months of appointment
C) Three months of appointment
D) 45 days of appointment
Q3) Which of the following phrases is frequently used to refer to estate or trust accounting?
A) Non-profit accounting
B) Testamentary accounting
C) Fiduciary accounting
D) All of the above phrases are used to refer to estate or trust accounting.
To view all questions and flashcards with answers, click on the resource link above.
Page 25