Special Topics in Accounting
Textbook Exam Questions
Course Introduction
Special Topics in Accounting covers advanced and emerging issues within the field of accounting, providing students with an in-depth understanding of contemporary practices, regulations, and technological advancements. This course explores themes such as forensic accounting, international accounting standards, accounting for sustainability, data analytics in auditing, and the effects of new legislation on financial reporting. Through case studies, research projects, and discussions, students develop the ability to analyze complex accounting situations and apply theoretical concepts to real-world scenarios, preparing them for specialized roles and informed decision-making in the evolving landscape of accounting.
Recommended Textbook
Modern Advanced Accounting in Canada 6th Edition by Murray Hilton
Available Study Resources on Quizplus
12 Chapters
691 Verified Questions
691 Flashcards
Source URL: https://quizplus.com/study-set/3849 Page 2
Chapter 1: A Survey of International Accounting
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/76768
Sample Questions
Q1) Income-smoothing has been applied to a German subsidiary of Company Inc,as it had an abnormally high operating income last year.The accountants working for the subsidiary would likely have:
A)debited an expense account and credited an equity account.
B)credited an expense account and debited an equity account.
C)credited an expense account and debited a Provision account appearing under the Liabilities section.
D)debited an expense account and credited a Provision account appearing under the Liabilities section.
Answer: D
Q2) Which of the following is true with respect to the implementation of IASB standards for the European Union?
A)These standards have been in place since 1985.
B)These standards shall be required by 2005.
C)All members of the European Union are required to comply with these standards with the exception of the United Kingdom.
D)Compliance with these standards shall be strictly optional.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Investments in Equity Securities
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/167446
Sample Questions
Q1) What is the amount of after-tax profit realized from downstream sales during 2002?
A)$8,000
B)$5,000
C)$3,000
D)$4,000
Answer: C
Q2) What is the amount of unrealized after-tax profit from downstream sales deducted from the Investment in Klein account during 2002?
A)$8,000
B)$5,000
C)$3,000
D)Nil
Answer: C
Q3) Private enterprise gap is permitted in certain instances for:
A)all privately held companies.
B)all publicly held companies.
C)all Canadian companies.
D)Canadian companies consolidating its foreign subsidiaries.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Business Combinations
Available Study Resources on Quizplus for this Chatper
73 Verified Questions
73 Flashcards
Source URL: https://quizplus.com/quiz/76766
Sample Questions
Q1) What would be the balance in Yours Inc's Retained Earnings Account after the Pooling of Interests in Question 29 has taken place?
A)$200,000
B)$188,000
C)$120,000
D)$100,000
Answer: B
Q2) Assume that both companies would be wound up and a new company called ABCDEF Inc.was created in its place.Prepare the Balance Sheet to reflect this occurrence as at July 1,2008.The new entity would have10,000 voting shares issued to the current shareholders for a total market value of $1,222,000.
Answer: 11ea8eda_c5fe_8db2_9698_bb0a80da4164_TB4094_00_TB4094_00
Q3) The Fixed Assets of the combined entity should be valued at:
A)$70,000
B)$154,000
C)$160,000
D)$120,000
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Consolidated Statements on Date of Acquisition
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/76765
Sample Questions
Q1) When the parent forms a new subsidiary,
A)there should be no acquisition differential.
B)a gain or loss will usually arise.
C)push down accounting rules must be followed)
D)it should not be included in the company's consolidated financial statements as this would effectively be double-counting.
Q2) Under the Parent Company Theory,which of the following pertaining to Consolidated Financial Statements is correct?
A)The Consolidated Balance Sheet is prepared by adding the book values of both the Parent and its subsidiary.
B)The Consolidated Balance Sheet is prepared by adding the book values of both the Parent and its subsidiary as well as the Parent's share of any acquisition differentials.
C)The Consolidated Balance Sheet is prepared by adding the fair market values of both the Parent and its subsidiary as well as the parent's share of any acquisition differentials.
D)The Consolidated Balance Sheet is prepared by adding together the fair market values of both the parent and its subsidiary.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Consolidation Subsequent to Acquisition Date
Available Study Resources on Quizplus for this Chatper
61 Verified Questions
61 Flashcards
Source URL: https://quizplus.com/quiz/76764
Sample Questions
Q1) An impairment loss can be reversed when
A)the impairment loss no longer exists or has been reduced and there has been a change in the estimates used to determine the assets recoverable amount.
B)with the exception of goodwill,all intangible assets carrying values exceed their fair market values.
C)the intangible assets carrying values exceed their undiscounted future cash flows.
D)the recoverable amount is determined and compared to the carrying amount.If the recoverable amount is greater than the carrying amount then the impairment loss previously recorded is reversed)
Q2) Assuming that GNR Inc uses the Equity Method,what effect would the above information have on GNR's investment in NMX account?
A)An increase of $30,000.
B)An increase of $40,000.
C)An increase of $10,000
D)No effect.
Q3) Prepare a Consolidated Balance Sheet for Remburn Inc.as at December 31,2002.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Intercompany Inventory and Land Profits
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/76763
Sample Questions
Q1) What would be the amount of the acquisition differential amortized during 2009?
A)$2,000
B)$82,000
C)$78,000
D)$40,000
Q2) Prepare a schedule of Realized and Unrealized profits for 2009 for both companies.Show your figures before and after tax.
Q3) What would be the balance in the investment in MARS account at December 31,2008?
A)$318,000.
B)$330,000.
C)$358,300.
D)$400,000.
Q4) Prepare YIN's Consolidated Income Statement for the Year ended June 30,2010
Q5) Assuming that X Inc.used the equity method,what adjustment would have to be made to the investment in Y account to adjust for any unrealized profits on Y's sales to X?
A)No adjustment would be required.
B)The account would have to be reduced by $400.
C)The account would have to be reduced by $160.
D)The account would have to be reduced by $200.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Aintercompany Profits in Depreciable Assets
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/76762
Sample Questions
Q1) What effect would the intercompany bond sale have on Ting's December 31,2010 Consolidated Income Statement?
A)Ting would record a gain of $5,000.
B)Ting would record a gain of $10,000.
C)Ting would record a loss of $15,000.
D)Ting would record a loss of $5,000.
Q2) Ignoring income taxes and any minority interest effects,what is the amount of profit realized during 2009 from the intercompany sale of equipment?
A)Nil
B)$5,000
C)$8,000
D)$4,000
Q3) What would be the pre-tax gain or loss to the combined entity on the intercompany sale of the bonds?
A)Nil.
B)$10,000 loss.
C)$10,000 gain.
D)$20,000 loss.
Q4) Compute the goodwill on the acquisition date.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Consolidated Cash Flows and Ownership Issues
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/76761
Sample Questions
Q1) Assuming that A acquired a controlling interest in B through numerous small acquisitions,what would be appropriate accounting with respect to these acquisitions?
A)An acquisition differential must be computed following each purchase.
B)The equity method must be adopted retroactively once 20% ownership is obtained.
C)The purchases should all be grouped together and treated as a single block purchase.
D)The cost method should be used until a controlling interest is acquired.
Q2) Approximately what percentage of the non-controlling interest was due to Y's own earnings?
A)19%
B)45%
C)30%
D)5%
Q3) What is the amount of goodwill arising from Hanson's January 1,2009 acquisition?
A)$80,000
B)$50,000
C)$60,000
D)$200,000
To view all questions and flashcards with answers, click on the resource link above.
10
Chapter 9: Other Consolidated Reporting Issues
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/76760
Sample Questions
Q1) Prepare a Balance Sheet for Clarke on December 31,2010 in accordance with current Canadian GAAP,assuming that Clarke's investment in Jensen is a significant influence investment.
Q2) What is the total amount of inventory that would appear on Seek's Consolidated Balance Sheet as at December 31,2010?
A)$132,000
B)$130,000
C)$360,000
D)$312,000
Q3) What is John's portion of any unrealized gain or loss arising from the transfer of John's assets to Jinxtor on January 1,2010?
A)$90,000
B)$210,000
C)$300,000
D)Nil
Q4) Prepare Alcor's Consolidated Balance Sheet as at December 31,2010.
Q5) Prepare A Corp.'s equity method journal entries for 2010,assuming that the assets donated by B Corp did not include cash.
Q6) Compute Alcor's Consolidated Retained Earnings as at December 31,2010.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Foreign Currency Transactions
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/76759
Sample Questions
Q1) Compute the carrying value of the investment at the end of each year:
Q2) What amount (in Canadian dollars)should ABC expect to receive from its bank on May 1,2013?
A)$72,000
B)$70,500
C)$70,950
D)$71,850
Q3) What is the amount of cash (in Canadian funds)received by CMI on the settlement date?
A)$136,920
B)$137,040
C)$137,400
D)$137,880
Q4) Calculate the exchange gains or losses that would be reported in the net income of the company for each year over the life of the loan.
Q5) At what amount (in Canadian Dollars)would RXN's sale be recorded initially?
A)$349,500
B)$343,500
C)$348,000
D)$350,400
12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Translation and Consolidation of the Financial
Statements of Foreign Operations
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/76758
Sample Questions
Q1) Which of the following statements is FALSE?
A)If a subsidiary is self-sustaining,the method of valuation of assets and liabilities is of no consequence in the translation because all of the assets are translated at the closing rate.
B)If a subsidiary is an integrated foreign subsidiary,the method of valuation of assets and liabilities is of no consequence in the translation because all of the assets are translated at the closing rate.
C)If a subsidiary is an integrated foreign subsidiary,a write-down to market may be required in the translated financial statements.
D)If a subsidiary is an integrated foreign subsidiary,no write-down is required in the foreign currency financial statements.
Q2) Which of the following statements is correct with respect to the translation of cost of sales in an integrated foreign subsidiary?
A)Opening inventory is translated using an average rate.
B)Opening inventory is translated using closing rates.
C)Ending inventory is translated using an average rate.
D)Ending inventory is translated using the rate in effect when the inventory was acquired.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Accounting for Not-For-Profit Organizations and Governments
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/76757
Sample Questions
Q1) Where should endowment contributions be presented in the financial statements of a not-for-profit organization under the deferral method?
A)They are reflected in the notes to the financial statements.
B)They are used to effect a reduction to a related expense account.
C)They are reflected in the statement of changes in net assets.
D)They are shown on the Statement of Cash Flows.
Q2) If a not-for-profit organization that usually has annual revenues well below $500,000 subsequently earns revenues significantly higher than $500,000,how must it report its Capital Assets?
A)It must capitalize and amortize retroactively.
B)It must continue following the same policy.
C)It must disclose any change in policy in a note to its financial statements.
D)It must capitalize,but not amortize,retroactively.
Q3) Prepare the necessary journal entries to record these transactions assuming that the restricted fund method of accounting for contributions is used.
Q4) Assuming that the assets were purchased from unrestricted fund sources,prepare the required journal entries for 2014,indicating the fund or funds to be used.
To view all questions and flashcards with answers, click on the resource link above. Page 14