Question 1

In preparing combined financial statements, which of the following accounts are eliminated (brought to a zero balance) in the combining process?

Accepted Answer

The answer of In preparing combined financial statements, which of...

Question 2

When a noncontrolling interest exists, intercompany sales on downstream intercompany inventory transfers need not be eliminated for consolidated reporting purposes.

Accepted Answer

A) True 
 B)False

Question 3

If an intercompany inventory transfer occurs in late 2005 and all this inventory is not resold to an outside, third party until 2006, the intercompany sale is eliminated in consolidation in 2005 and 2006.

Accepted Answer

A) True 
 B)False

Question 4

_____ (Module 1) In 2005, Paxco sold inventory above cost to Saxco, its 100%-owned subsidiary. At 12/31/05, $3,000 of unrealized intercompany profit existed. In 2006, Saxco resold this inventory. Which of the following "postings" is made in consolidation at 12/31/06 (not 05)?

Accepted Answer

The answer of _____ (Module 1) In 2005, Paxco sold...

Question 5

_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. How much intercompany profit was realized in 2006-not 2005?

Accepted Answer

A)  $12,000 
B)  $21,000 
C)  $33,000 
D)  $34,000 
E)  None of the above. 
A)  $12,000 
B)  $21,000 
C)  $33,000 
D)  $34,000 
E)  None of the above.

Question 6

_____ In 2006, Panex sold inventory costing $100,000 to its 75%-owned subsidiary, Sanex, for $150,000. At 12/3106, Sanex reported $60,000 of intercompany-acquired inventory in its balance sheet. The amount by which the 2006 consolidated net income that accrues to the controlling interest will be lower as a result of this being an intercompany transaction is

Accepted Answer

A)  $12,000 
B)  $15,000 
C)  $20,000 
D)  $37,500 
E)  None of the above. 
A)  $12,000 
B)  $15,000 
C)  $20,000 
D)  $37,500 
E)  None of the above.

In preparing combined financial statements, which of the following accounts are eliminated (brought to a zero balance) in the combining process?

When a noncontrolling interest exists, intercompany sales on downstream intercompany inventory transfers need not be eliminated for consolidated reporting purposes.

If an intercompany inventory transfer occurs in late 2005 and all this inventory is not resold to an outside, third party until 2006, the intercompany sale is eliminated in consolidation in 2005 and 2006.

_____ (Module 1) In 2005, Paxco sold inventory above cost to Saxco, its 100%-owned subsidiary. At 12/31/05, $3,000 of unrealized intercompany profit existed. In 2006, Saxco resold this inventory. Which of the following "postings" is made in consolidation at 12/31/06 (not 05)?

_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. How much intercompany profit was realized in 2006-not 2005?

Wholly Owned Subsidiaries: at Date of Creation

Wholly Owned Subsidiaries: Postcreation Periods

Partially Owned Created Subsidiaries & Variable Interest Entities

Introduction to Business Combinations

The Purchase Method: at Date of Acquisition-100 Ownership

The Purchase Method: Postacquisition Periods and Partial Ownerships

New Basis of Accounting

Introduction to Intercompany Transactions

Intercompany Fixed Asset Transfers & Bond Holdings

Changes in a Parents Ownership Interest, Statement of Cash Flows, & Earnings Per Share

Reporting Segment and Related Information

International Accounting Standards & Translating Foreign Currency Transactions

Using Derivatives to Manage Foreign Currency Exposures

Translating Foreign Currency Statements: The Current Rate Method

Translating Foreign Currency Statements: The Temporal Method and the Functional Currency Concept

Interim Period Reporting

Securities and Exchange Commission Reporting

Bankruptcy Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Changes in Ownership

Partnerships: Liquidations

Estates and Trusts

Governmental Accounting: Basic Principles and the General Fund

Governmental Accounting: The Special-Purpose Funds and Special General Ledger

Not-For-Profit Organizations: Introduction and Private Npos

Filters

Exam 9: Intercompany Inventory Transfers

In preparing combined financial statements, which of the following accounts are eliminated (brought to a zero balance) in the combining process?

When a noncontrolling interest exists, intercompany sales on downstream intercompany inventory transfers need not be eliminated for consolidated reporting purposes.

If an intercompany inventory transfer occurs in late 2005 and all this inventory is not resold to an outside, third party until 2006, the intercompany sale is eliminated in consolidation in 2005 and 2006.

_____ (Module 1) In 2005, Paxco sold inventory above cost to Saxco, its 100%-owned subsidiary. At 12/31/05, $3,000 of unrealized intercompany profit existed. In 2006, Saxco resold this inventory. Which of the following "postings" is made in consolidation at 12/31/06 (not 05)?

_____ In 2005, Palco sold inventory costing $70,000 to its 100%-owned subsidiary, Salco, for $110,000. At 12/31/05, $33,000 of this inventory was reported in Salco's balance sheet. In 2006, Salco resold this inventory for $55,000. How much intercompany profit was realized in 2006-not 2005?

Wholly Owned Subsidiaries: at Date of Creation

Wholly Owned Subsidiaries: Postcreation Periods

Partially Owned Created Subsidiaries & Variable Interest Entities

Introduction to Business Combinations

The Purchase Method: at Date of Acquisition-100 Ownership

The Purchase Method: Postacquisition Periods and Partial Ownerships

New Basis of Accounting

Introduction to Intercompany Transactions

Intercompany Fixed Asset Transfers & Bond Holdings

Changes in a Parents Ownership Interest, Statement of Cash Flows, & Earnings Per Share

Reporting Segment and Related Information

International Accounting Standards & Translating Foreign Currency Transactions

Using Derivatives to Manage Foreign Currency Exposures

Translating Foreign Currency Statements: The Current Rate Method

Translating Foreign Currency Statements: The Temporal Method and the Functional Currency Concept

Interim Period Reporting

Securities and Exchange Commission Reporting

Bankruptcy Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Changes in Ownership

Partnerships: Liquidations

Estates and Trusts

Governmental Accounting: Basic Principles and the General Fund

Governmental Accounting: The Special-Purpose Funds and Special General Ledger

Not-For-Profit Organizations: Introduction and Private Npos

Filters