Special Topics in Financial Accounting Practice Questions
Course Introduction
This course delves into advanced and emerging issues in financial accounting, focusing on areas not typically covered in core accounting classes. Topics may include new financial reporting standards, complex financial instruments, international accounting practices, and current debates in accounting regulation. Emphasis is placed on critical analysis of real-world cases, application of advanced accounting concepts, and the impact of regulatory and market changes on financial statement preparation and interpretation. Designed for advanced students, the course encourages exploration of contemporary challenges and innovative practices within financial accounting.
Recommended Textbook
Advanced Financial Accounting 8th Edition by Richard Baker
Available Study Resources on Quizplus
20 Chapters
1041 Verified Questions
1041 Flashcards
Source URL: https://quizplus.com/study-set/3622
Page 2
Chapter 1: Intercorporate Acquisitions and Investments in Other Entities
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/71928
Sample Questions
Q1) Which of the following observations is (are)consistent with the acquisition method of accounting for business combinations? I.Expenses related to the business combination are expensed.
II)Stock issue costs are treated as a reduction in the issue price.
III)All merger and stock issue costs are expensed.
IV)No goodwill is ever recorded.
A)III
B)IV
C)I and II
D)I,II,and IV
Answer: C
Q2) Based on the information provided,what amount will be reported immediately following the business combination for Retained Earnings in the combined company's balance sheet?
A)$170,000
B)$225,000
C)$115,000
D)$210,000
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Reporting Intercorporate Interests
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71927
Sample Questions
Q1) Based on the preceding information,had Rotor Corporation used the cost method,what would have been the balance in the investment account on Dec 31,2008?
A)$150,000
B)$157,500
C)$153,400
D)$153,500
Answer: A
Q2) Based on the information provided,what will be the balance in the investment account on December 31,2007 reported by Wheeley?
A)$172,000
B)$173,800
C)$183,800
D)$194,400
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: The Reporting Entity and Consolidated Financial Statements
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/71926
Sample Questions
Q1) Which of the following usually does not represent a variable interest?
A)Common stock,with no special features or provisions
B)Senior debt
C)Subordinated debt
D)Loan or asset guarantees
Answer: B
Q2) Based on the preceding information,what amount would be reported in the consolidated financial statements for inventory on January 1,2008?
A)$39,000
B)$36,000
C)$75,000
D)$0
Answer: B
Q3) Under FASB 141R,consolidation follows largely which theory approach?
A)Proprietary
B)Parent company
C)Entity
D)Variable
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Consolidation of Wholly Owned Subsidiaries
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/71925
Sample Questions
Q1) Based on the information provided,what amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition?
A)$30,000
B)$15,000
C)$85,000
D)$45,000
Q2) Based on the information provided,the differential associated with this acquisition is:
A)$36,000.
B)$40,000.
C)$10,000.
D)$50,000.
Q3) Based on the preceding information,what amount of total stockholder's equity will be reported in the consolidated balance sheet prepared immediately after the business combination?
A)$300,000
B)$479,000
C)$315,000
D)$350,000
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Consolidation of Less-Than-Wholly Owned Subsidiaries
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/71924
Sample Questions
Q1) Based on the preceding information,what amount will be reported as noncontrolling interest in the consolidated balance sheet immediately following the acquisition?
A)$0
B)$70,000
C)$83,750
D)$100,000
Q2) Based on the preceding information,what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination?
A)$0
B)$15,000
C)$40,000
D)$46,000
Q3) Based on the preceding information,what amount would be reported as total assets in the consolidated balance sheet at December 31,2009?
A)$805,000
B)$712,000
C)$742,000
D)$1,102,000
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Intercompany Transfers of Services and
Noncurrent Assets
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71923
Sample Questions
Q1) Based on the preceding information,what amount of consolidated net income should be reported in 2008?
A)$3,262,000
B)$4,050,000
C)$3,254,100
D)$3,122,000
Q2) Which workpaper eliminating entry will be made on December 31,2009,if XYZ Corporation had initially purchased the land for $50,000 and then sold it to ABC on July 15,2008,for $70,000?
A)Option A
B)Option B
C)Option C
D)Option D
Q3) Based on the preceding information,in the preparation of the 2008 consolidated balance sheet,accumulated depreciation will be:
A)debited for $50,000 in the eliminating entries.
B)credited for $110,000 in the eliminating entries.
C)credited for $120,000 in the eliminating entries.
D)debited for $160,000 in the eliminating entries.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Intercompany Inventory Transactions
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/71922
Sample Questions
Q1) When a parent and its subsidiary use a periodic inventory system rather than a perpetual system,the income and asset balances reported in the consolidated financial statements are: I.affected only if there are upstream intercompany sales of inventory. II)affected only if there are downstream intercompany sales of inventory.
A)I
B)II
C)Both I and II
D)Neither I nor II
Q2) The consolidation treatment of profits on inventory transfers that occurred before the business combination depends on whether: I.the companies were independent at that time.
II)the sale transaction was the result of arm's-length bargaining.
A)I
B)II
C)Both I and II
D)Neither I nor II
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Intercompany Indebtedness
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/71921
Sample Questions
Q1) Based on the information given above,what price did Senior pay to purchase the Junior bonds?
A)$530,000
B)$516,875
C)$533,750
D)$550,625
Q2) Based on the information given above,what was the effect of DEF's purchase of XYZ's bond on the amount of retained earnings reported in XYZ's June 30,2008,consolidated balance sheet?
A)No effect
B)$85,000 increase
C)$85,000 decrease
D)$35,000 decrease
Q3) Based on the information given above,what amount of interest income does Moss record for 2008?
A)$12,000
B)$2,500
C)$7,500
D)$9,500
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Consolidation Ownership Issues
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/71920
Sample Questions
Q1) Based on the preceding information,the investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Additional Paid-In Capital for:
A)$50,000.
B)$95,000.
C)$230,000.
D)$185,500.
Q2) Based on the information provided,what amount will be reported as income assigned to the controlling interest for 2009 under the treasury stock method?
A)$18,750
B)$156,250
C)$175,000
D)$100,000
Q3) Based on the information provided,what is the book value of the common stock on January 1,2009?
A)$410,000
B)$360,000
C)$390,000
D)$350,000
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Additional Consolidation Reporting Issues
Available Study Resources on Quizplus for this Chatper
43 Verified Questions
43 Flashcards
Source URL: https://quizplus.com/quiz/71919
Sample Questions
Q1) Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash used in investing activities for 2009?
A)$180,000
B)$100,000
C)$255,000
D)$110,000
Q2) Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash provided by operating activities for 2009?
A)$207,000
B)$163,000
C)$180,000
D)$149,000
Q3) Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash used in financing activities for 2009?
A)$32,000
B)$38,000
C)$42,000
D)$70,000
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: Multinational Accounting: Foreign Currency
Transactions and Financial Instruments
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/71918
Sample Questions
Q1) Corporation X has a number of exporting transactions with companies based in Vietnam.Exporting activities result in receivables.If the settlement currency is the US dollar,which of the following will happen by changes in the direct or indirect exchange rates?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Based on the preceding information,which of the following journal entries will be made on February 20,2009?
A)Option A
B)Option B
C)Option C
D)Option D
Q3) Based on the preceding information,what is the net gain or loss on the euro speculative contract?
A)$8,000 gain
B)$6,000 gain
C)$3,000 loss
D)$1,000 loss
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Multinational Accounting: Issues in Financial
Reporting and Translation of Foreign Entity Statements
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/71917
Sample Questions
Q1) Which of the following defines a foreign-based entity that uses a functional currency different from the local currency? I.A U.S.subsidiary in Britain maintains its accounting records in pounds sterling,with the majority of its transactions denominated in pounds sterling.
II)A U.S.subsidiary in Peru conducts virtually all of its business in Latin America,and uses the U.S.dollar as its major currency.
A)I.
B)II.
C)Both I and II.
D)Neither I nor II.
Q2) Based on the information provided,in Newsprint's 2008 consolidated income statement,what amount should be included as foreign exchange loss in computing net income,if the U.S.dollar is the functional currency and the remeasurement method is appropriate?
A)$15,000
B)$10,000
C)$25,000
D)$28,000
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Segment and Interim Reporting
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/71916
Sample Questions
Q1) Mason Company paid its annual property taxes of $240,000 on February 15,2009.Mason also anticipates that its annual repairs expense for 2009 will be $1,200,000.This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired.What amount should Mason deduct for property taxes and repairs in each quarter for 2009?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Collins Company reported consolidated revenue of $120,000,000 in 2008.Collins operates in two geographic areas,domestic and Asia.The following information pertains to these two areas: What calculation below is correct to determine if the revenue test is satisfied for the Asian operations?
A)$58,000,000/$140,000,000
B)$50,000,000/$120,000,000
C)$58,000,000/$120,000,000
D)$50,000,000/$140,000,000
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Sec Reporting
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/71915
Sample Questions
Q1) Both the FCPA (Foreign Corrupt Practices Act of 1977)and SOX (Sarbanes-Oxley Act of 2002)contain provisions related to Internal Control.Discuss some significant differences between how the two acts impact internal control practices for publicly held companies.
Q2) Smithtown Distributors acquired Paul's Plumbing on January 15,2008.Violet Flowers acquired Frank's Farm on January 1,2007.In the 12/31/07 financial statements filed with the SEC,Smithtown included a Pro Forma disclosure and Violet did not.If both acquisitions account for 100% of the common stock of the company acquired and are considered to be material,then can both filings be considered proper?
Q3) Which of the following choices best describes correct use of the forms indicated?
A)Option A
B)Option B
C)Option C
D)Option D
Q4) Form 10-K
Q5) Comment Letter
Q6) Accounting and Auditing Enforcement Releases
Q7) Financial Reporting Releases
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Partnerships: Formation,operation,and
Changes in Membership
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/71914
Sample Questions
Q1) The JPB partnership reported net income of $160,000 for the year ended December 31,2008.According to the partnership agreement,partnership profits and losses are to be distributed as follows: How should partnership net income for 2008 be allocated to J,P,and B?
A)Option A
B)Option B
C)Option C
D)Option D
Q2) Shue,a partner in the Financial Brokers Partnership,has a 30 percent share in partnership profits and losses.Shue's capital account had a net decrease of $100,000 during 2008.During 2008,Shue withdrew $240,000 as withdrawals and contributed equipment valued at $50,000 to the partnership.What was the net income of the Financial Brokers Partnership for 2008?
A)$633,334
B)$466,666
C)$300,000
D)$190,000
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Partnerships: Liquidation
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/71913
Sample Questions
Q1) The capital balances,prior to the liquidation of the XYZ partnership,were as follows: X,Y,and Z share profits and losses in the ratio of 5:3:2.As a result of a loan,the partnership owes Y $80,000.Using the information above,which partner has the highest Loss Absorption Power (LAP)prior to liquidation?
A)X
B)Y
C)Z
D)Both X and Y
Q2) On December 31,2008,Mr.and Mrs.Williams owned a parcel of land held as an investment.The land was purchased for $40,000 in 2006,and was encumbered by a mortgage with a principal balance of $30,000 at December 31,2008.On this date the fair value of the land was $75,000.In the Williams' December 31,2008,personal statement of financial condition,at what amount should the land investment and mortgage payable be reported?
A)Option A
B)Option B
C)Option C
D)Option D
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Governmental Entities: Introduction and General
Fund Accounting
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/71912
Sample Questions
Q1) When an internal service fund (ISF)enters into a capital lease the transaction is recorded in the: I.fixed assets of the ISF.
II)long-term debt of the ISF.
A)I only
B)II only
C)Both I and II
D)Neither I nor II
Q2) Which of the following funds are classified as fiduciary funds?
A)Agency and Special revenue funds.
B)Internal service and Enterprise funds.
C)Private-purpose trust and Agency funds.
D)Capital projects and Debt service funds.
Q3) Which organization has the authority to establish generally accepted accounting principles for state and local government entities?
A)The National Council on Governmental Accounting
B)The Governmental Accounting Standards Board
C)The Financial Accounting Standards Board
D)The Municipal Officers Finance Organization
Q4) Briefly discuss the various types of governmental funds and proprietary funds.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Governmental Entities: Special Funds and
Government-Wide Financial Statements
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/71911
Sample Questions
Q1) At June 30,2009,total assets for the various funds of a local municipality were as follows: Applying GASB 34 criteria,which of the above are major funds for reporting purposes?
A)GF,CPF,EF
B)CPF,EF
C)CPF,ISF,EF
D)GF,CPF,ISF,EF
Q2) On July 1,2008,Cleveland established a capital projects fund to construct a new town hall.Financing for construction came from the following sources: Construction of the town hall was completed on June 15,2009.For the fiscal year ended June 30,2009,what amount should Cleveland's capital projects fund report for revenues on its statement of revenues,expenditures,and changes in fund balance?
A)$1,000,000
B)$1,500,000
C)$3,500,000
D)$14,500,000
Q3) GASB 34 requires a Reconciliation schedule for the Statement of Net Assets.What does this schedule document?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Not-For-Profit Entities
Available Study Resources on Quizplus for this Chatper
113 Verified Questions
113 Flashcards
Source URL: https://quizplus.com/quiz/71910
Sample Questions
Q1) In accordance with FASB 116,contributions of services are recognized as increases in unrestricted net assets by a private,not for profit entity if which of the following criteria are satisfied? I.The services received create or enhance nonfinancial assets.
II)The services require specialized skills,are provided by individuals possessing those skills,and would typically need to be purchased if not provided by donations.
III)The services will be performed within the current fiscal year.
A)I or II.
B)I or III.
C)II or III.
D)I,II,III.
Q2) The CFO of a "Not-for-Profit" hospital is making a presentation at your college.The presentation is for Business and Health-Science majors.During the presentation the CFO mentions assets being reported "above the line." On the way out your roommate a health-science major asks,you an accounting major,to explain what the CFO was referring to.What do you respond?
Q3) Expended 75 percent of the contributions previously received from donors for research.
Q4) The governing board designated assets for plant expansion.
To view all questions and flashcards with answers, click on the resource link above.
Page 21
Chapter 20: Corporations in Financial Difficulty
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/71909
Sample Questions
Q1) Which chapters of the Bankruptcy Code deal with corporations?
A)Chapters 1,3,and 5
B)Chapter 9
C)Chapters 7 and 11
D)Chapters 12 and 13
Q2) Under which nonjudicial action do creditors agree to assist the debtor in managing the most efficient payment of creditors' claims?
A)Debt restructuring arrangement
B)Creditors' committee management
C)Transfer of assets
D)Composition agreement
Q3) What is defined as a condition in which a company is unable to meet debts as the debts mature?
A)Deficit
B)Liability
C)Insolvency
D)Credit squeeze
Q4) Briefly explain the three classes of creditors specified in the Bankruptcy Code.
Q5) What are the conditions necessary for using fresh start reporting in reorganization?
To view all questions and flashcards with answers, click on the resource link above. Page 22