ACC401 quiz 1 ch 1 2

This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 1. The second 15 questions cover the material in Chapter 2. Be sure you are in the correct Chapter when you take the quiz.

 

Question 1

2 out of 2 points

Which of the following situations best describes a business combination to be accounted for as a statutory merger?

Answer

Selected Answer:

  

Only one of the combining companies survives and the other loses its separate identity.

Correct Answer:

  

Only one of the combining companies survives and the other loses its separate identity.

Question 2

0 out of 2 points

Which of the following statements would not be a valid or logical reason for entering into a business combination?

Answer

Selected Answer:

  

to reduce risk by acquiring established product lines.

Correct Answer:

  

the operating costs of the combined entity would be more than the sum of the separate entities.

Question 3

0 out of 2 points

The impairment standard as it relates to goodwill is an example of a

Answer

Selected Answer:

  

component of other comprehensive income.

Correct Answer:

  

loss or lack of benefit approach.

Question 4

2 out of 2 points

Under the economic unit concept, noncontrolling interest in net assets is treated as

Answer

Selected Answer:

  

stockholders' equity.

Correct Answer:

  

stockholders' equity.

Question 5

2 out of 2 points

Which of the following statements is correct?

Answer

Selected Answer:

  

The parent company concept suggests partial elimination of unrealized intercompany profits.

Correct Answer:

  

The parent company concept suggests partial elimination of unrealized intercompany profits.

Question 6

0 out of 2 points

When following the parent company concept in the preparation of consolidated financial statements, noncontrolling interest in combined income is considered a(n)

Answer

ACC401 Quiz 1 ch 1-2

This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 1. The second 15 questions cover the material in Chapter 2. Be sure you are in the correct Chapter when you take the quiz. Question 1 2 out of 2 points Which of the following situations best describes a business combination to be accounted for as a statutory merger? Answer Selected Answer: Only one of the combining companies survives and the other loses its separate i...

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