Exam 16: Accounting for Multiple Entities

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

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 include as a an)

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

List and explain three reasons why businesses combine.

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

The theoretically preferred method of presenting noncontrolling interest on a consolidated balance sheet is

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

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

Under the acquisition method of accounting for a business combination when the parent company has acquired only 90% of the voting stock of a subsidiary,

Which of the following is the appropriate basis for valuing fixed assets acquired in a business combination carried out by exchanging cash for common stock?

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

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

Consolidated statements are proper for Neely,Inc.,Randle,Inc.,and Walker,Inc.,if

Meredith Company and Kyle Company were combined in an acquisition transaction.Meredith was able to acquire Kyle at a bargain price.The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Meredith.After revaluing noncurrent assets to zero there was still some of the bargain purchase amount remaining formerly termed negative goodwill).Proper accounting treatment by Meredith is to report the amount as

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

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

On October 1,Company X acquired for cash all of the outstanding common stock of Company Y.Both companies have a December 31 year end and have been in business for many years.Consolidated net income for the year ended December 31 should include net income of

Under the acquisition method of accounting for a business combination,a bargain purchase is

The noncontrolling interest in a subsidiary is reported in the consolidated balance sheet