Questions from Advanced Accounting

Q: Is noncontrolling interest share an expense? Explain.

Is noncontrolling interest share an expense? Explain.

Q: 1. In preparing a statement of cash flows, the cost

1. In preparing a statement of cash flows, the cost of acquiring a subsidiary is reported: a As an operating activity under the direct method b As an operating activity under the indirect method c As...

Q: Comparative consolidated financial statements for Pam Corporation and its 80 percent–

Comparative consolidated financial statements for Pam Corporation and its 80 percent–owned subsidiary at and for the years ended December 31 are summarized as follows: REQUIRED: P...

Q: In preparing a consolidated statement of cash flows, is a firm

In preparing a consolidated statement of cash flows, is a firm required to disclose cash flow per share?

Q: Firms adopting the direct method to prepare the statement of cash flows

Firms adopting the direct method to prepare the statement of cash flows often include a reconciliation of net income to net cash flows from operating activities. Is this required, and, if so, how shou...

Q: If a parent in accounting for its subsidiary amortizes patents on its

If a parent in accounting for its subsidiary amortizes patents on its separate books, why do we include an adjustment for patents amortization in the consolidation workpaper?

Q: In what way do the adjustment and elimination entries for consolidation workpapers

In what way do the adjustment and elimination entries for consolidation workpapers differ for the financial statement and trial balance approaches?

Q: Explain why noncontrolling interest share is added to the controlling share of

Explain why noncontrolling interest share is added to the controlling share of consolidated net income in determining cash flows from operating activities.

Q: How is reciprocity established between a parent company’s investment account and the

How is reciprocity established between a parent company’s investment account and the equity accounts of its subsidiary when the cost method is used?

Q: How is noncontrolling interest share entered in consolidation workpapers?

How is noncontrolling interest share entered in consolidation workpapers?