Accounting Test Bank

Here's the largest of free accounting textbook test bank questions online and available answers for the collegial students. Let's enjoy to prepare well for your accounting course and future career with test bank!

Friday, March 20, 2015

30 Free Test Bank for Advanced Accounting 1st Edition by Hamlen

So nonsense if you do not know how to sort and distribute effectively the time into grasping huge accounting knowledge in class. No need to get stressed of it! Our method of online accounting learning, 30 free test bank for Advanced Accounting 1st Edition by Hamlen Multiple Choice Questions is one of the secrets to success for the students on the path to become a professional accountant. And you? You already equip yourself with easy-to-follow and professional accounting exam questions? Click away right now with our free test bank for students’ every day study purposes, which is a useful tool to help students with solid foundation as well as deeper understanding of accounting.

Please visit the link below to get full questions and answers:

https://testbank123.com/free-test-bank-advanced-accounting-1st-edition-hamlen.html

Following IFRS, when should a company use the equity method to report an intercorporate investment?

a.The company significantly influences the decisions of the investee.
b.The investee is the company’s major supplier.
c.The company owns 20 – 50% of the investee’s voting stock.
d.The company is holding the investment in its long-term portfolio.

Porter Corporation acquires all of Quinn Company’s assets and liabilities on January 1, 2012, for $10,000,000 in cash. At the date of acquisition, Quinn’s balance sheet reported assets of $50,000,000 and liabilities of $46,000,000. Investigation reveals that Quinn’s reported plant assets are undervalued by $2,500,000. Porter reports how much goodwill on this acquisition?

a.$6,000,000
b.$2,500,000
c.$3,500,000
d.$2,000,000

Following U.S. GAAP, when should a company use the equity method to report an intercorporate investment?

a.The company significantly influences the decisions of the investee.
b.The investee is the company’s major supplier.
c.The company owns 20 – 50% of the investee’s voting stock.
d.The company is holding the investment in its long-term portfolio.

Impairment losses on equity method investments are:

a.not reported.
b.reported in other comprehensive income.
c.reported as a direct adjustment to beginning retained earnings.
d.reported on the income statement.

Proportionate consolidation is:

a.used to report investments in marketable securities, held for long-term investment.
b.not allowed in the U.S.
c.a way to report all the assets and liabilities of another company on the investor’s books.
d.an alternative way to report controlling investments under IFRS.

SFAS 115 divides investments with readily determinable fair values into what categories?

a.trading and held-to-maturity investments
b.trading, held-to-maturity, and equity methodinvestments
c.available-for-sale and held-to-maturity investments
d.trading, available-for-sale, and held-to-maturity investments.

At the beginning of the current year, Trux, Inc. enters a joint venture with another company. Each company invests €25,000,000 for a 50% interest in the joint venture. During the year, the joint venture reports income of €1,500,000 and pays no dividends. At the end of the year the joint venture’s balance sheet reports €65,000,000 in assets and €13,500,000 in liabilities. If Trux uses proportionate consolidation to report its investment in the joint venture, its liabilities will be:

a.the same as if it used the equity method to report the investment.
b.€13,500,000 higher than if it used the equity method to report the investment.
c.€25,000,000 lower than if it used the equity method to report the investment.
d.€6,750,000 higher than if it used the equity method to report the investment.

A company acquires all of the assets and liabilities of another company. Which one of the following increases the amount of goodwill the acquiring company reports?

a.The acquired company’s equipment is undervalued.
b.The acquired company has previously unreported intangibles.
c.The acquired company’s debt is undervalued.
d.The acquired company’s inventory is undervalued.

Which statement below is false concerning IFRS for marketable debt and equity investments?

a.Trading investments are reported at fair value, with unrealized gains and losses reported in income.
b.Available-for-sale investments are reported at fair value, with unrealized gains and losses reported in equity.
c.Impairment losses are reported in equity, and cannot be reversed.
d.Held-to-maturity investments are reported at amortized cost.

U.S. GAAP general requires joint ventures to be reported as: