Question 3 Which of the following varies between the equity, initial value, and partial equity methods of accounting for an investment? A) the amount of consolidated net income. B) total assets on the consolidated balance sheet. C) total liabilities on the consolidated balance sheet. D) the balance in the investment account on the parent's books. E) the amount of consolidated cost of goods sold. Question 4 Push-down accounting is concerned with the A) impact of the purchase on the subsidiary's financial statements. B) recognition of goodwill by the parent. C) correct consolidation of the financial statements. D) impact of the purchase on the separate financial statements of the parent. E) recognition of dividends received from the subsidiary. Question 5 Masha and the Bear Corp. acquired all of the common stock of Vampirina Co. in 2011. Vampirina maintained its incorporation. Which of Masha and the Bear account balances would vary between the equity method and the initial value method? A) Goodwill, Investment in Vampirina Co., and Retained Earnings. B) Expenses, Investment in Vampirina Co., and Equity in Subsidiary Earnings. C) Investment in Vampirina Co., Equity in Subsidiary Earnings, and Retained Earnings. D) Common Stock, Goodwill, and Investment in Vampirina Co. E) Expenses, Goodwill, and Investment in Vampirina Co.
Question 3 Which of the following varies between the equity, initial value, and partial equity methods of accounting for an investment? A) the amount of consolidated net income. B) total assets on the consolidated balance sheet. C) total liabilities on the consolidated balance sheet. D) the balance in the investment account on the parent's books. E) the amount of consolidated cost of goods sold. Question 4 Push-down accounting is concerned with the A) impact of the purchase on the subsidiary's financial statements. B) recognition of goodwill by the parent. C) correct consolidation of the financial statements. D) impact of the purchase on the separate financial statements of the parent. E) recognition of dividends received from the subsidiary. Question 5 Masha and the Bear Corp. acquired all of the common stock of Vampirina Co. in 2011. Vampirina maintained its incorporation. Which of Masha and the Bear account balances would vary between the equity method and the initial value method? A) Goodwill, Investment in Vampirina Co., and Retained Earnings. B) Expenses, Investment in Vampirina Co., and Equity in Subsidiary Earnings. C) Investment in Vampirina Co., Equity in Subsidiary Earnings, and Retained Earnings. D) Common Stock, Goodwill, and Investment in Vampirina Co. E) Expenses, Goodwill, and Investment in Vampirina Co.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Question 3
Which of the following varies between the equity, initial value, and partial equity methods of
accounting for an investment?
A) the amount of consolidated net income.
B) total assets on the consolidated balance sheet.
C) total liabilities on the consolidated balance sheet.
D) the balance in the investment account on the parent's books.
E) the amount of consolidated cost of goods sold.
Question 4
Push-down accounting is concerned with the
A) impact of the purchase on the subsidiary's financial statements.
B) recognition of goodwill by the parent.
C) correct consolidation of the financial statements.
D) impact of the purchase on the separate financial statements of the parent.
E) recognition of dividends received from the subsidiary.
Question 5
Masha and the Bear Corp. acquired all of the common stock of Vampirina Co. in 2011.
Vampirina maintained its incorporation. Which of Masha and the Bear account balances
would vary between the equity method and the initial value method?
A) Goodwill, Investment in Vampirina Co., and Retained Earnings.
B) Expenses, Investment in Vampirina Co., and Equity in Subsidiary Earnings.
C) Investment in Vampirina Co., Equity in Subsidiary Earnings, and Retained Earnings.
D) Common Stock, Goodwill, and Investment in Vampirina Co.
E) Expenses, Goodwill, and Investment in Vampirina Co.
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