Exam 17: Understanding and Analyzing Consolidated Financial Statements

Beck Company owns a 60 percent interest in Subsidiary Company.For the year ended December 31,2016,the net income of Beck Company was $80 and the net income of Subsidiary Company was $10.What is the balance in the Noncontrolling Interests account on the consolidated income statement for the year ending December 31,2016?

All other things equal,a higher current ratio indicates that ________.

Comparing a company's debt-to-equity ratio for 2010 to the debt-to-equity ratios for 2010 from other companies in the same industry is called a(n)________.

In accordance with Generally Accepted Accounting Principles in the United States,the ________ must be reported on the financial statements.

The Today Company reports the following information: What is the dividend payout for the year ended December 31,2012?

Rocky Company acquired 40% of the voting stock of Boulder Company for $40 million.At the end of Year 1,Boulder Company reports net income of $15 million and pays cash dividends of $5 million.At the end of Year 1,the market value of Rocky Company's investment in Boulder Company is $44 million.At the time of the acquisition,what accounts would be affected on the books of Rocky Company?

Under the equity method of accounting for investments,the acquisition cost of an investment is adjusted for ________.

In an efficient capital market,the appropriate investment strategy is risk control,________ and ________.

Mussa Company has the following income statement for the year ending December 31,2016: Operating expenses: If Mussa Company prepares a common size income statement,what will they report for Wage expense?

Changes in the market value of trading securities are reflected in the ________ account.Changes in the market value of available-for-sale securities are reflected in the ________ account.

Vince Company purchased common stock in Sanchez Company.During the current year,Sanchez Company earned $4,000,000 and paid dividends of $1,000,000.Assume that Vince Company owns 30% of the outstanding shares of Sanchez Company.Sanchez Company's dividend will affect Vince Company by ________.

To prepare common size income statements,percentages for line items are usually based on ________.To prepare common size balance sheets,percentages for line items are usually based on ________.

Herman Company acquired 10 percent of the voting stock of Hudson Company for $10 million.Herman Company plans to keep the investment for several years.At the end of Year 1,Hudson Company reports net income of $15 million and pays cash dividends of $5 million.At the end of Year 1,the market value of Herman Company's investment in Hudson Company is $11 million.What entry is necessary at the end of Year 1 to account for the change in market value of Herman Company's investment in Hudson Company?

Hull Company has the following income statement for the year ending December 31,2016: Operating expenses: If Hull Company prepares a common size income statement,what will they report for Rent expense?

In an efficient capital market,the role of accounting information is to ________.

Comparing a company's current ratio today with the same company's current ratio for the past ten years is called a(n)________.

Investments acquired with the intent to resell them in the near future are called trading securities.

The following information is available for the Tomorrow Company: What is the return on stockholders' equity for the year ended December 31,2009?

To compare companies that differ in size,analysts use ________.

Elimination entries avoid double-counting assets,liabilities and stockholders' equity on the consolidated financial statements.