20 Free Test Bank for Advanced Accounting 11th Edition by Beams

There are many concise questions bank in text books that you want to choose to learn . I am glad to recommend using  free test bank for Advanced Accounting 11th Edition Beams. It is good for self-study users with logical and consistent test bank for advanced accounting for free at home. Furthermore, free online questions and full answers, to practice easily your understanding about accounting.  Not only practising with test bank that you will be provided more knowledge about accounting without learning as a robot. Also There are  full free questions that can help to reinforce the concepts. Exercises and problems that are related to the topic presented in the chapter. More real life issues mentioned in the test,  with 20 mutiple choice questions  below relating the knowledge to daily life even closer for you all. Let’s start now!

Kindly go to the link below to get full questions and answers:

https://testbank123.com/free-test-bank-for-advanced-accounting-11th-edition-beams.html

Goodwill arising from a business combination is

•  A) charged to Retained Earnings after the acquisition is completed.
•  B) amortized over 40 years or its useful life, whichever is longer.
•  C) amortized over 40 years or its useful life, whichever is shorter.
•  D) never amortized.

In a business combination, which of the following will occur?

•  A) All identifiable assets and liabilities are recorded at fair value at the date of acquisition.
•  B) All identifiable assets and liabilities are recorded at book value at the date of acquisition.
•  C) Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired.
•  D) None of the above is correct.

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.

A business merger differs from a business consolidation because

•  A) a merger dissolves all but one of the prior entities, but a consolidation dissolves all of the prior entities.
•  B) a consolidation dissolves all but one of the prior entities, but a merger dissolves all of the prior entities.
•  C) a merger is created when two entities join, but a consolidation is created when more than two entities join.
•  D) a consolidation is created when two entities join, but a merger is created when more than two entities join.

In the business combination of Polka and Spot

•  A) the costs of registering and issuing the securities are included as part of the purchase price for Spot.
•  B) the salaries of Polka's employees assigned to the merger are treated as expenses.
•  C) all of the costs except those of registering and issuing the securities are included in the purchase price of Spot.
•  D) only the accounting and legal fees are included in the purchase price of Spot.

Historically, much of the controversy concerning accounting requirements for business combinations involved the ________ method.

•  A) purchase
•  B) pooling of interests
•  C) equity
•  D) acquisition

In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct?

•  A) Firms are not required to disclose the name of the acquired company.
•  B) Firms are not required to disclose the business purpose for a combination.
•  C) Firms are required to disclose the nature, terms and fair value of consideration transferred in a business combination.
•  D) All of the above are correct.

Durer Inc. acquired Sea Corporation in a business combination and Sea Corp went out of existence. Sea Corp developed a patent listed as an asset on Sea Corp's books at the patent office filing cost. In recording the combination,

•  A) fair value is not assigned to the patent because the research and development costs have been expensed by Sea Corp.
•  B) Sea Corp's prior expenses to develop the patent are recorded as an asset by Durer at purchase.
•  C) the patent is recorded as an asset at fair market value.
•  D) the patent's market value increases goodwill.

Under the provisions of FASB Statement No. 141R, in a business combination, when the fair value of identifiable net assets acquired exceeds the investment cost, which of the following statements is correct?

•  A) A gain from a bargain purchase is recognized for the amount that the fair value of the identifiable net assets acquired exceeds the acquisition price.
•  B) The difference is allocated first to reduce proportionately (according to market value) non-current assets, then to non-monetary current assets, and any negative remainder is classified as a deferred credit.
•  C) The difference is allocated first to reduce proportionately (according to market value) non-current assets, and any negative remainder is classified as an extraordinary gain.
•  D) The difference is allocated first to reduce proportionately (according to market value) non-current, depreciable assets to zero, and any negative remainder is classified as a deferred credit.

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.

According to FASB Statement No. 141, liabilities assumed in an acquisition will be valued at the ________.

•  A) estimated fair value
•  B) historical book value
•  C) current replacement cost
•  D) present value using market interest rates

In reference to international accounting for goodwill, U.S. companies have complained that past U.S. accounting rules for goodwill placed them at a disadvantage in competing against foreign companies for merger partners. Why?

•  A) Previous rules required immediate write off of goodwill which resulted in a one-time expense that was not required under international rules.
•  B) Previous rules required amortization of goodwill which resulted in an ongoing expense that was not required under international rules.
•  C) Previous rules did not permit the recording of goodwill, thus resulting in a lower asset base than international counterparts would recognize.
•  D) All of the above are correct.

When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company?

•  A) Purchase of the majority of outstanding voting stock of the acquired company.
•  B) Purchase of all assets and liabilities of another company.
•  C) Purchase the assets, but not necessarily the liabilities, of another company previously in bankruptcy.
•  D) All of the above methods result in a company gaining control over another company.

Which of the following is not a reason for a company to expand through a combination, rather than by building new facilities?

•  A) A combination might provide cost advantages.
•  B) A combination might provide fewer operating delays.
•  C) A combination might provide easier access to intangible assets.
•  D) A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.

Which of the following methods does the FASB consider the best indicator of fair values in the evaluation of goodwill impairment?

•  A) Senior executive's estimates
•  B) Financial analyst forecasts
•  C) Market value
•  D) The present value of future cash flows discounted at the firm's cost of capital

Pepper Company paid $2,500,000 for the net assets of Salt Corporation and Salt was then dissolved. Salt had no liabilities. The fair values of Salt's assets were $3,750,000. Salt's only non-current assets were land and buildings with book values of $100,000 and $520,000, respectively, and fair values of $180,000 and $730,000, respectively. At what value will the buildings be recorded by Pepper?

•  A) $730,000
•  B) $520,000
•  C) $210,000
•  D) $0

According to FASB Statement 141R, which one of the following items may not be accounted for as an intangible asset apart from goodwill?

•  A) A production backlog
•  B) A talented employee workforce
•  C) Noncontractual customer relationships
•  D) Employment contracts