Exam 6: A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Using the indirect method, where does the decrease in accounts receivable appear in a consolidated statement of cash flows?

Which of the following is not a factor that indicates a business enterprise that establishes a variable interest entity (VIE) should consolidate such VIE with its own financial statements?

Net cash flow from financing activities was:

A variable interest entity can take all of the following forms except a(n):

Which of the following statements is true concerning the acquisition of existing debt of a consolidated affiliate in the year of the debt acquisition?

What is the new percent ownership Ryan owns in Chase?

On January 1, 2018, Parent Corporation acquired a controlling interest in the voting common stock of Foxboro Co.At the same time, Parent purchased sixty percent of Foxboro's outstanding preferred stock.In preparing consolidated financial statements, how should the acquisition of the preferred stock be accounted for?

A parent company owns a 70 percent interest in a subsidiary whose stock has a valuation basis of $27 per share.On the last day of the year, the subsidiary issues new shares for $27 per share, and the parent buys its 70 percent interest in the new shares.Which of the following statements is true?

What consolidation entry would be recorded in connection with these intra-entity bonds on December 31, 2021?

What is Ryan's percent ownership in Chase after the acquisition of the treasury shares (rounded)?

Parker owned all of Odom Inc.Although the Investment in Odom Inc.account had a balance of $834,000, the subsidiary's 12,000 shares had an underlying book value of only $56 per share.On January 1, 2018, Odom issued 3,000 new shares to the public for $70 per share.How does this transaction affect the Investment in Odom Inc.account?

What would Knight Co.report as consolidated basic earnings per share (rounded)?

With respect to the acquisition-date consolidation worksheet, which of the following is accurate?

A subsidiary issues new shares of common stock at an amount below book value.Outsiders buy all of these shares.Which of the following statements is true?

If new bonds are issued from a parent to its subsidiary, which of the following statements is false?

What is the adjusted book value of Jones after the stock issuance?

What are the primary sources of information that are used for preparation of a consolidated statement of cash flows?

What is the amount of goodwill resulting from this acquisition?

Goehring, Inc.owns 70 percent of Harry Corp.The consolidated income statement for a year reports $40,000 Noncontrolling Interest in Harry Corp.'s Net Income.Harry paid dividends in the amount of $100,000 for the year.What are the effects of these transactions in the consolidated statement of cash flows for the year?

Describe how this transaction would affect Panton's books.