Questions from Advanced Accounting

Q: What effect does the elimination of intercompany accounts receivable and accounts payable

What effect does the elimination of intercompany accounts receivable and accounts payable have on consolidated working capital?

Q: Explain the designations upstream sales and downstream sales. Of what significance

Explain the designations upstream sales and downstream sales. Of what significance are these designations in computing parent and consolidated net income?

Q: Would failure to eliminate unrealized profit in inventories at December 31,

Would failure to eliminate unrealized profit in inventories at December 31, 2016, have any effect on consolidated net income in 2017? 2018?

Q: Under what circumstances is noncontrolling interest share affected by intercompany sales activity

Under what circumstances is noncontrolling interest share affected by intercompany sales activity?

Q: How does a parent adjust its investment income for unrealized profit on

How does a parent adjust its investment income for unrealized profit on sales it makes to its subsidiaries, (a) in the year of the sale and (b) in the year in which the subsidiaries sell the related...

Q: On January 2, 2000, Pop and Son Corporation merged their

On January 2, 2000, Pop and Son Corporation merged their operations through a business combination accounted for as a pooling of interests. The $300,000 direct costs of combination were paid in cash b...

Q: The stockholder’s equity accounts of Pop Corporation and Son Corporation at December

The stockholder’s equity accounts of Pop Corporation and Son Corporation at December 31, 2015, were as follows (in thousands): On January 1, 2016, Pop Corporation acquired an 80 pe...

Q: Pam Corporation owns an 80 percent interest in the common stock of

Pam Corporation owns an 80 percent interest in the common stock of Sun Corporation, acquired several years ago at book value. Pam regularly sells merchandise to Sun. Information relevant to the interc...

Q: How is the combined cost of goods sold affected by unrealized profit

How is the combined cost of goods sold affected by unrealized profit in (a) the beginning inventory of the subsidiary and (b) the ending inventory of the subsidiary?

Q: Unrealized profit in the ending inventory is eliminated in consolidation workpapers by

Unrealized profit in the ending inventory is eliminated in consolidation workpapers by increasing cost of sales and decreasing the inventory account. How is unrealized profit in the beginning inventor...