Exam 16: Accounting for Multiple Entities

A subsidiary's functional currency is the local currency that has not experienced significant inflation.The appropriate exchange rate for translating the depreciation on plant assets in the income statement of the foreign subsidiary is the

List and explain three reasons why businesses combine.

Which of the following is the best theoretical justification for consolidated financial statements?

Define noncontrolling interest.Historically,how has noncontrolling interest been disclosed on corporate balance sheets?

In a business combination that is accounted for under the acquisition method,the entity that obtains control over one or more businesses and establishes the acquisition date that control was achieved is called the

Goodwill represents the excess of the cost of an acquired company over the

Arkin,Inc. ,owns 90 percent of the outstanding stock of Baldwin Company.Curtis,Inc. ,owns 10 percent of the outstanding stock of Baldwin Company.On the consolidated financial statements of Arkin,Curtis should be considered as

How is the recorded cost determined in an acquisition business combination?

Under which of the theories of equity is a manager's goals considered as important as those of the common stockholder.

Under the acquisition method for a business combination,the cost incurred to effect the business combination,such as finders and legal fees are

How does SFAS No.52 FASB ASC 830)define functional currency?

A sale of goods,denominated in a currency other than the entity's functional currency,resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received.Exchange rates between the functional currency and the currency in which the transaction was denominated changed.The resulting gain should be included as a an)

Which of the following is not a consideration in segment reporting for diversified enterprises?

Under the acquisition method of accounting for a business combination,goodwill is equal to

How are operating segments defined by SFAS No.131 FASB ASC 280-10-50-1)?

The acquisition method of accounting for a business combination is consistent with

When translating foreign currency financial statements,which of the following accounts would be translated using current exchange rates? Property,Plant,and Inventories Equipment carried at cost

For a business combination,we measure all assets and liabilities of an acquired company at fair value.Fair value