Questions from Financial Accounting


Q: Water Company owns 80 percent of Fire Company’s outstanding common stock.

Water Company owns 80 percent of Fire Company’s outstanding common stock. On December 31, 20X9, Fire sold equipment to Water at a price in excess of Fire’s carrying...

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Q: A 70 percent owned subsidiary company declares and pays a cash dividend

A 70 percent owned subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and noncontrolling interest balances in the parent company’s consol...

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Q: Popper Company established a subsidiary and transferred equipment with a fair value

Popper Company established a subsidiary and transferred equipment with a fair value of $72,000 to the subsidiary. Popper had purchased the equipment with a 10-year expected life 4 years earlier for $1...

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Q: Amber Corporation holds 80 percent of the stock of Movie Productions Inc

Amber Corporation holds 80 percent of the stock of Movie Productions Inc. During 20X4, Amber purchased an inventory of snack bar items for $40,000 and resold $30,000 to Movie Productions for $48,000....

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Q: Match the items in the left-hand column with the descriptions

Match the items in the left-hand column with the descriptions/explanations in the right-hand column.

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Q: Not all business combinations are successful, and many entail substantial risk

Not all business combinations are successful, and many entail substantial risk. Acquiring another company may involve a number of different types of risk. Obtain a copy of the 10-K report for Alphabet...

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Q: Pie Corporation acquired 80 percent of Slice Company’s common stock on December

Pie Corporation acquired 80 percent of Slice Company’s common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice’s asset...

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Q: Following is a list of transactions and events that may occur in

Following is a list of transactions and events that may occur in private, not-for-profit entities. Indicate where each transaction or event should be reported on the entity’s statement of cash flows....

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Q: In the preparation of a consolidated income statement: a.

In the preparation of a consolidated income statement: a. Income assigned to noncontrolling shareholders always is computed as a pro rata portion of the reported net income of the consolidated entity....

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Q: Select the correct answer for each of the following questions.

Select the correct answer for each of the following questions. 1. According to ASC 815, which of the following is not an underlying? a. A security price. b. A monthly average temperature. c. The price...

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