Special Topics in Accounting
Mock Exam
Course Introduction
This course explores emerging, advanced, or specialized topics in the field of accounting that extend beyond the content covered in traditional accounting courses. Through case studies, current research, and real-world examples, students will gain insights into contemporary challenges such as sustainability reporting, forensic accounting, data analytics in accounting, and evolving international standards. The course fosters critical thinking by encouraging students to assess the implications of new accounting practices and their impact on businesses, regulators, and society. Subject areas may vary each term to reflect the latest trends and issues facing the profession.
Recommended Textbook
Advanced Accounting 9th Edition by
Joe Ben Hoyle
Available Study Resources on Quizplus
19 Chapters
1679 Verified Questions
1679 Flashcards
Source URL: https://quizplus.com/study-set/3647
Page 2
Chapter 1: The Equity Method of Accounting for Investments
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/72552
Sample Questions
Q1) How would a change be made from the fair value method to the equity method?
Answer: According to APB 18,the investment account and retained earnings of the investor should be adjusted to retrospectively restate results of operations of prior periods.
Q2) Club Co.appropriately uses the equity method to account for its investment in Chip Corp.As of the end of 2008,Chip's common stock had suffered a significant decline in fair value,which is expected to be recovered over the next several months.How should Club account for the decline in value?
A)Club should switch to the fair-value method.
B)No accounting because the decline in fair value is temporary.
C)Club should decrease the balance in the investment account to the current value and recognize a loss on the income statement.
D)Club should not record its share of Chip's 2008 earnings until the decline in the fair value of the stock has been recovered.
E)Club should decrease the balance in the investment account to the current value and recognize an unrealized loss on the balance sheet.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Consolidation of Financial Information
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/72541
Sample Questions
Q1) Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $42 fair value for all of the outstanding shares of Vicker.What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1,20X1 balances)as a result of this transaction (which is not a pooling of interests)?
A)$20,000 and $160,000.
B)$20,000 and $260,000.
C)$380,000 and $160,000.
D)$464,000 and $160,000.
E)$380,000 and $260,000.
Answer: D
Q2) Assuming the combination is accounted for as an acquisition,compute consolidated retained earnings at the date of the combination.
A)$1,160.
B)$1,170.
C)$1,280.
D)$1,290.
E)$1,640.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Consolidations - Subsequent to the Date of Acquisition
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/72540
Sample Questions
Q1) How much goodwill impairment should Pritchett report for 2009?
Answer: Goodwill Impairment Test-Step 2 (Apple and Carrot only)
11ea88ab_df39_4973_bb89_4fdcb5876cb0_TB4174_00 Total impairment loss $5,000 + $75,000 = $80,000
Q2) If Goehler applies the partial equity method in accounting for Kenneth,what is the consolidated balance for the Equipment account as of December 31,2010?
A)$1,080,000.
B)$1,104,000.
C)$1,100,000.
D)$1,468,000.
E)$1,475,000.
Answer: B
Q3) Compute the December 31,2010,consolidated trademark.
A)$50,000.
B)$46,875.
C)$0.
D)$34,375.
E)$37,500.
Answer: D
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Consolidated Financial Statements and Outside Ownership
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/72539
Sample Questions
Q1) What is the dollar amount of non-controlling interest which should appear on a balance sheet prepared immediately after consolidation according to the acquisition method per SFAS 141(R)?
A)$350,000
B)$300,000
C)$400,000
D)$370,000
E)$0
Q2) In consolidation at January 1,2009,what adjustment is necessary for Hogan's Buildings account?
A)$2,000 increase
B)$2,000 decrease
C)$1,800 increase
D)$1,800 decrease
E)No change
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Consolidated Financial StatementsIntercompany Asset Transactions
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/72538
Sample Questions
Q1) Compute the gain on transfer of equipment reported by Simon for 2009.
A)$19,500.
B)$18,250.
C)$11,750.
D)$38,250.
E)$37,500.
Q2) What is the total of consolidated revenues?
A)$700,000.
B)$644,000.
C)$588,000.
D)$560,000.
E)$840,000.
Q3) Compute income from Stiller on Leo's books for 2010.
A)$140,000.
B)$97,000.
C)$125,000.
D)$100,000.
E)$112,000.
Q4) How do upstream and downstream inventory transfers differ in their effect on a year-end consolidation?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Variable Interest Entities,
intercompany Debt,
Statement of Cash Flows, and Other Issues
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/72537
Sample Questions
Q1) What would differ between a statement of cash flows for a consolidated company and an unconsolidated company using the indirect method?
A)Parent's dividends would be subtracted as a financing activity.
B)Gain on sale of land would be deducted from net income.
C)Noncontrolling interest in net income of subsidiary would be added to net income.
D)Proceeds from the sale of long-term investments would be added to investing activities.
E)Loss on sale of equipment would be added to net income.
Q2) Where do dividends paid to the noncontrolling interest of a subsidiary appear on a consolidated statement of cash flows?
A)Cash flows from operating activities.
B)Cash flows from investing activities.
C)Cash flows from financing activities.
D)Supplemental schedule of noncash investing and financing activities.
E)They do not appear on the consolidated statement of cash flows.
Q3) What consolidation entry would have been recorded in connection with these intercompany bonds on December 31,2008?
Q4) Prepare Panton's journal entry to recognize the impact of this transaction.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Consolidated Financial Statements - Ownership
Patterns and Income Taxes
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/72536
Sample Questions
Q1) Assuming that separate income tax returns are being filed,what deferred income tax asset is created?
A)$0.
B)$900.
C)$1,100.
D)$1,800.
E)$6,000.
Q2) What are the benefits or advantages of filing a consolidated income tax return?
Q3) What is the noncontrolling interest in Pi's income for 2009?
A)$0.
B)$9,600.
C)$10,000.
D)$19,200.
E)$20,000.
Q4) Required: Prepare a schedule to show Kurton's share of controlling interest in Luvyn's net income.
Q5) What ownership pattern is referred to as mutual ownership? Describe briefly or illustrate with a diagram.
Q6) Under what conditions must a deferred income tax asset be recorded?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Segment and Interim Reporting
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/72535
Sample Questions
Q1) Which of the following is a criterion for determining whether an operating segment is separately reportable according to SFAS 131?
A)An operating segment's assets are 10 percent or more of combined segment assets.
B)An operating segment's assets are 10 percent or more of consolidated assets.
C)An operating segment's assets are 10 percent or more of combined segment liabilities.
D)An operating segment's assets are 10 percent or more of consolidated liabilities.
E)An operating segment's assets are 10 percent or more of corporate assets.
Q2) In applying the asset test,what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment?
A)$12.5.
B)$15.2.
C)$17.2.
D)$18.4.
E)$19.8.
Q3) Prepare the asset test to determine which of these segments was separately reportable.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Foreign Currency Transactions and Hedging
Foreign Exchange Risk
Available Study Resources on Quizplus for this Chatper
90 Verified Questions
90 Flashcards
Source URL: https://quizplus.com/quiz/72534
Sample Questions
Q1) Which of the following approaches is used in the United States in accounting for foreign currency transactions?
A)One-transaction perspective;defer foreign exchange gains and losses.
B)Two-transaction perspective;accrue foreign exchange gains and losses.
C)Three-transaction perspective;defer foreign exchange gains and losses.
D)One-transaction perspective;accrue foreign exchange gains and losses.
E)Two-transaction perspective;defer foreign exchange gains and losses.
Q2) (A. )Assume this hedge is designated as a cash flow hedge.Prepare the journal entries relating to the transaction and the forward contract.
(B. )Compute the effect on 2008 net income.
(C. )Compute the effect on 2009 net income.
Q3) Yelton Co.just sold inventory for 80,000 lira,which Yelton will collect in sixty days.Briefly describe a hedging transaction Yelton could engage in to reduce its risk of unfavorable exchange rates.
Q4) What amount will Coyote Corp.report on its 2009 financial statements for Inventory?
Q5) What factors create a foreign exchange gain?
Q6) What is meant by the term hedging?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Q7) What amount will Coyote Corp.report on its 2009 financial statements for Sales?
Chapter 10: Translation of Foreign Currency Financial Statements
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/72551
Sample Questions
Q1) When consolidating a foreign subsidiary,which of the following statements is true?
A)Parent reports a cumulative translation adjustment using the equity method.
B)Parent's reports a gain or loss in net income using the equity method.
C)Subsidiary's cumulative translation adjustment is carried forward to the consolidated balance sheet.
D)Subsidiary's income/loss is carried forward to the consolidated balance sheet.
E)All foreign currency gains/losses are eliminated on the consolidated income statement and balance sheet.
Q2) Compute ending inventory for 2009 under the current rate method.
A)$13,950.
B)$14,100.
C)$14,400.
D)$14,850.
E)$15,150.
Q3) What exchange rate should be used to translate (a)revenues and expenses that occur throughout the year and (b)a gain or loss that occurs on a specific day?
Q4) Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into U.S.dollars.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Worldwide Accounting Diversity and International Accounting Standards
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/72550
Sample Questions
Q1) As a result of inventory loss,what is the difference in income between reporting using US GAAP and IFRSs?
A)US GAAP income is $1000 higher.
B)US GAAP income is $2000 lower.
C)IFRSs income is $1000 higher.
D)IFRSs income is $1000 lower.
E)IFRSs income is $2000 higher.
Q2) What problems are caused by diverse accounting practices?
Q3) As a result of the sale and leaseback transaction in 2008,what is the difference between income between reporting using US GAAP and IFRSs in 2008?
A)US GAAP income is $80,000 higher.
B)US GAAP income is $100,000 higher.
C)IFRSs income is $50,000 lower.
D)IFRSs income is $100,000 lower.
E)IFRSs income is $80,000 higher.
Q4) What are the arguments in favor of accounting harmonization?
Q5) What are the two major types of legal systems used around the world?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Q6) What are the three authoritative pronouncements that make up the International Financial Reporting Standards (IFRSs)?
Chapter 12: Financial Reporting and the Securities and Exchange Commission
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/72549
Sample Questions
Q1) What is private placement of securities?
A)a procedure that allows a company to register securities and then sell them over a period of two years without reregistering.
B)a procedure that allows the sale of securities to a small group of knowledgeable investors without any general solicitation.
C)a method of filing Form 10-K with the SEC.
D)the registration of mutual funds that engage in investing and trading securities.
E)a sale of securities to 35 or fewer accredited investors.
Q2) Briefly describe Regulation S-K.What is its purpose?
Q3) What is the purpose of the SEC's Regulation S-K?
Q4) Which one of the following forms is used in connection with employee stock plans?
A)S-8.
B)S-6.
C)S-4.
D)SB-1.
E)S-11.
Q5) What are some of the reasons for the corporate scandals of 2001 and 2002?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Accounting for Legal Reorganizations and Liquidations
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/72548
Sample Questions
Q1) In a statement of financial affairs,assets are classified
A)according to whether they are pledged with particular creditors.
B)as current or noncurrent.
C)as monetary or nonmonetary.
D)as operating or nonoperating.
E)as direct or indirect.
Q2) How is the presentation of a balance sheet during a reorganization different from a normal balance sheet??
Q3) Which of the following is not a responsibility of the bankruptcy trustee?
A)Recover all property belonging to the insolvent company.
B)Liquidate common stock of the company.
C)Preserve the estate from any further deterioration.
D)Make distributions to the proper claimants.
E)Void preferences made by the debtor within 90 days prior to the filing of the bankruptcy petition if the company was already insolvent.
Q4) Who must accept and confirm the Reorganization plan?
Q5) What is meant by a "partially secured liability"?
Q6) Required:
Prepare a statement of financial affairs for Mount Inc.as of March 15,2009.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Partnerships: Formation and Operation
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/72547
Sample Questions
Q1) What was Eaton's share of income or loss for the first year?
A)$3,900 loss.
B)$11,700 loss.
C)$10,400 loss.
D)$24,700 loss.
E)$9,100 loss.
Q2) Which of the following type of organization is classified as a partnership,or similar to a partnership,for tax purposes?
(I) )Limited Liability Company
(II) )Limited Liability Partnership
(III. )Subchapter S Corporation
A)II only.
B)II and III.
C)I and II.
D)I and III.
E)I,II,and III.
Q3) What are the remaining partners' capital balances after Howell's interest is dissolved,assuming the goodwill method is applied?
Q4) What events cause the dissolution of a partnership?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Partnerships: Termination and Liquidation
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/72546
Sample Questions
Q1) What accounting transactions are not recorded by an accountant during liquidation?
A)The conversion of partnership assets into cash.
B)The allocation of the resulting gains and losses.
C)The payment of liabilities and expenses.
D)Remaining unpaid debts settled,and the distribution of any remaining assets to the partners based on their profit and loss ratio.
Q2) Prepare the journal entry for Donald,Chief & Berry LLP on August 1,2009,to record the realization of the other assets.
Q3) A local partnership has assets of cash of $13,000 and land worth $70,000.All liabilities have been paid and the partners are all insolvent.The partners capital accounts are as follows Roberts,$50,000,Ferry,$30,000 and Mones 3,000.The partners share profits and losses 5:3:2.If the land is sold for $45,000,how much cash will Mones receive in the final settlement?
A)$0.
B)$1,500.
C)$3,000.
D)$21,750.
E)$36,250.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Accounting for State and Local Governments,
Part I
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/72545
Sample Questions
Q1) Which of the following is not a classification of nonexchange transactions according to GASB Statement Number 33?
A)Derived tax expenditures.
B)Voluntary nonexchange transactions.
C)Government-mandated nonexchange transactions.
D)Derived tax revenues.
E)Imposed nonexchange revenues.
Q2) The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry,and identify the fund in which it is recorded,to record the receipt of the grant.
Q3) Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:
A)An expenditure.
B)An encumbrance.
C)An appropriation.
D)An expense.
E)An investment.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Accounting for State and Local Governments,part II
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/72544
Sample Questions
Q1) The city of Kamen collected $17,000 from parking meters that must be transferred to the county government.
Required:
For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.
Q2) Which statement is false regarding the Balance Sheet for Fund-Based Statements?
A)The Balance Sheet for Fund-Based Statements measures only current financial resources of the governmental entity.
B)The Balance Sheet for Fund-Based Statements uses the modified accrual method for timing purposes.
C)Capital assets are not reported on the Balance Sheet for Fund-Based Statements.
D)The Balance Sheet for Fund-Based Statements measures only long-term financial resources of the governmental entity.
E)Long-term debts are not reported on the Balance Sheet for Fund-Based Statements.
Q3) Prepare a Statement of Net Assets
Q4) What is meant by the term legally independent?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Accounting for Not-For-Profit Organizations
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/72543
Sample Questions
Q1) What are the three categories of net assets required by the FASB in reporting a not-for-profit organization?
A)Unrestricted,Temporarily Restricted,and Permanently Restricted.
B)Unrestricted,Restricted,and Fund Balance.
C)Restricted,Permanently Restricted,and Fund Balance.
D)Unrestricted,Temporarily Restricted,and Fund Balance.
E)None of the above.
Q2) A local social worker,earning $12 per hour working for the state government,contributed 600 hours of time at no charge to the Yelton Center,a voluntary health and welfare organization.Except for these donated services,an additional staff person would have been hired by the organization. Required: How should the Yelton Center record the contributed services?
Q3) How does a voluntary health and welfare organization account for donated goods and cash contributed for operating purposes? What revenues are recognized by voluntary health and welfare organizations?
Q4) What are third party payors? Why are their interests important in accounting for health care entities?
Q5) What should Dura Foundation report as program service expenses?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Accounting for Estates and Trusts
Available Study Resources on Quizplus for this Chatper
74 Verified Questions
74 Flashcards
Source URL: https://quizplus.com/quiz/72542
Sample Questions
Q1) The gift to David is a
A)general legacy.
B)specific legacy.
C)demonstrative legacy.
D)residual legacy.
E)devise.
Q2) The provisions of a will currently undergoing probate are: "One thousand shares of Wal-mart stock to my son;$10,000 in cash from my savings account to my brother;$5,000 in cash to my daughter;and any remaining property divided equally between my son and daughter." At the time of death,the estate included 1,000 shares of Walmart stock and $6,000 cash in the savings account.What would the brother have received from the settlement of the estate?
A)$0.
B)$5,000.
C)$6,000.
D)$10,000.
E)$11,000.
Q3) How may real property be treated in identifying estate property subject to probate?
Q4) Prepare a Charge and Discharge Statement for the estate.
To view all questions and flashcards with answers, click on the resource link above. Page 21