江西财经大学国际会计期末考试试卷 C

合集下载

江西财经大学高级财务会计国际学院题库课件

Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith)Chapter 9 Indirect and Mutual HoldingsMultiple Choice Questions1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the following is correct?A) Bajo should not be consolidated because noncontrolling interests hold 52%.B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure.C) Pallet has 8% indirect ownership of Bajo.D) Pallet has 80% indirect ownership of Bajo.Answer: BObjective: LO1Difficulty: Moderate2) Page Corporation acquired a 60% interest in Ace Corporation at a price $40,000 in excess of book value and fair value on January 1, 2010. On the same date, Ace acquired a 70% interest in Bader Corporation at a price $30,000 in excess of book value and fair value. The excess purchase cost paid by Page and Ace was attributed to goodwill. Separate net incomes (excluding investment income) for the three affiliates for 2010 are as follows: Page, $500,000, Ace, $300,000, and Bader, $400,000.Page's controlling interest share of consolidated net income for 2010 isA) $808,000.B) $848,000.C) $920,000.D) $960,000.Answer: BObjective: LO1Difficulty: ModerateUse the following information to answer the question(s) below.Paint Corporation owns 82% of Achille Corporation and Achille Corporation owns 80% of Badrack Corporation. For the current year, the separate net incomes (excluding investment income) of Paint, Achille, and Badrack are $120,000, $100,000, and $50,000, respectively. The cost of each investment was equal to the book value of the investment, which was also equal to the fair value.3) Noncontrolling interest share for Badrack isA) $9,000.B) $10,000.C) $20,000.D) $40,000.Answer: BExplanation: B) (0.20 × $50,000 = $10,000)Objective: LO1Difficulty: Moderate4) Noncontrolling interest share for Achille isA) $18,000.B) $25,200.C) $36,200.D) $72,000.Answer: BExplanation: B) [$100,000 + (0.80) × ($50,000)] × 18% = $25,200Objective: LO1Difficulty: Moderate5) Controlling interest share of consolidated net income for Paint Corporation and Subsidiaries is:A) $234,800.B) $244,800.C) $260,000.D) $270,000.Answer: AExplanation: A)Paint Achille Badrack Separate incomes $120,000 $100,000 $50,000 Allocate 80% of Badrack to Achille _______ 40,000 (40,000) Subtotal 120,000 140,000 10,000 Allocate 82% of Achille to Paint 114,800 (114,800)Controlling interest share of cons. net income $234,800 _______ _______ Noncontrolling interest share $25,200 $10,000 Objective: LO1Difficulty: Moderate6) Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During 2010, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2010. Net income(loss) of the three companies (excluding investment income) for 2010 are:Pabari Corporation $180,000Alders Corporation 72,000Babao Corporation (30,000)Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for 2010 areA) $211,200 and ($1,200).B) $211,200 and ($3,600).C) $213,600 and ($1,200).D) $213,600 and ($3,600).Answer: DExplanation: D)Noncont. interest share: $8,400 Profit + ($12,000) LossPabari Alders BabaoSeparate incomes $180,000 $72,000 $(30,000)Less: Unrealized profit on land _______ (12,000) _______Subtotal $180,000 $60,000 (30,000)Allocate Babao's net loss toAlders ($30,000) × 60% _______ (18,000) 18,000Subtotal 180,000 42,000 (12,000)Allocate 80% of Aldersincome to Pabari 33,600 (33,600)Controlling interest share of consolidatednet income $213,600 _______ _______Noncontrolling interest share $8,400 $12,000Objective: LO1Difficulty: Moderate7) Pablo Corporation acquired 60% of Abagia Corporation on January 1, 2010, at a cost of $20,000 in excess of book value. Also, on July 1, 2010, Pablo acquired 60% of Babin Corporation at book value. On January 1, 2011, Abagia acquired a 20% interest in Babin at a cost of $10,000 in excess of book value. The excess purchase costs paid by Pablo and Abagia were attributed to goodwill.On July 1, 2011, Pablo sold land with a book value of $20,000 to Abagia for $40,000. The $20,000 unrealized gain is included in Pablo's separate income. Separate net incomes for the affiliated companies (excluding investment income) for 2011 are:Pablo $250,000Abagia 70,000Babin 100,000Controlling interest share of consolidated net income for 2011 isA) $304,000.B) $324,000.C) $344,000.D) $364,000.Answer: CExplanation: C)Pablo Abagia BabinSeparate incomes $250,000 $70,000 $100,000Less: Unrealized profit on land (20,000) ________ ________Separate realized incomes $230,000 $70,000 $100,000Allocate Babin's income:60% to Pablo 60,000 (60,000)20% to Abagia ________ 20,000 (20,000)Subtotal 290,000 90,000 20,000Allocate Abagia's net income60% to Pablo 54,000 (54,000)Controlling interest shareof consolidated net income $344,000 ________ ________Noncontrolling interest share $36,000 $20,000Objective: LO1Difficulty: Moderate8) Paglia Corporation owns 80% of Aburn Corporation and has separate net income of $200,000 for 2010. Aburn Corporation has separate net income of $100,000 and owns 70% of the outstanding stock of Badley Corporation. Badley Corporation has separate net income of $80,000. (Separate net incomes exclude investment income.) The cost of each investment was equal to book value and fair value. The controlling interest share of consolidated net income for 2010 isA) $324,800.B) $328,800.C) $344,800.D) $344,800.Answer: AExplanation: A)Paglia Aburn BadleySeparate incomes $200,000 $100,000 $80,000Allocate Badley's income:70% to Aburn _______ 56,000 (56,000)Subtotal $200,000 $156,000 $24,000Allocate Aburn's income:80% to Paglia 124,800 (124,800) _______Controlling interest shareof consolidated net income $324,800Noncontrolling interest share $31,200 $24,000Objective: LO1Difficulty: ModeratePace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a purchase price $10,000 in excess of the book value. The purchase price differential for all three investments was attributable to goodwill. (There were no fair value/book value differences in assets and liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace. Babon's separate net income is $150,000. Separate net incomes exclude investment income.9) The controlling interest share of consolidated net income for the current year isA) $341,000.B) $348,400.C) $351,000.D) $355,000.Answer: CExplanation: C)Pace Abaza BabonSeparate incomes $100,000 $190,000 $150,000Plus: Unrealized loss onland sale to Pace ________ 10,000 ________Separate realized incomes $100,000 $200,000 $150,000Allocate Babon's income:60% to Pace 90,000 (90,000)20% to Abaza ________ 30,000 (30,000)Subtotal 190,000 230,000 30,000Allocate Abaza's net incometo Pace $230,000 × 70% 161,000 (161,000)Controlling interest shareof consolidated net income $351,000 ________ ________Noncontrolling interest share $69,000 $30,000Objective: LO1Difficulty: Moderate10) The amount of noncontrolling interest share for the current year isA) $69,000.B) $85,000.C) $95,000.D) $99,000.Answer: DExplanation: D) ($69,000 + 30,000 = $99,000)Objective: LO1Difficulty: ModeratePahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book value differences in the assets and liabilities of Pahm, Abussi and Badock.11) Controlling interest share of consolidated net income for the current year isA) $504,800.B) $516,800.C) $545,200.D) $557,200.Answer: BExplanation: B) ($200,000 + (80%) × [$240,000 + (60%) × (260,000)] = $516,800)Objective: LO1Difficulty: Moderate12) The amount of income for the current year assigned to the noncontrolling shareholders of Badock Corporation isA) $100,000.B) $104,000.C) $120,000.D) $140,000.Answer: BExplanation: B) (40% × $260,000 = $104,000)Objective: LO1Difficulty: Moderate13) The amount of income for the current year assigned to the noncontrolling shareholders of Abussi Corporation isA) $48,000.B) $53,200.C) $74,000.D) $79,200.Answer: DExplanation: D) (20% × $240,000) + (20% × $156,000) = $79,200Pahm Abussi BadockSeparate incomes $200,000 $240,000 $260,000Allocate Badock's income:60% to Abussi ________ 156,000 (156,000)Subtotal $200,000 $396,000 $104,000Allocate Abussi's net income toPahm $396,000 × 80% 316,800 (316,800)Controlling interest shareof consolidated net income $516,800 ________ ________Noncontrolling interest share $79,200 $104,000Objective: LO1Difficulty: Moderate14) The net income reported for Pahm Corporation for the current year isA) $504,800.B) $516,800.C) $545,200.D) $557,200.Answer: BExplanation: B) Pahm's net income is the same as the controlling interest share of consolidated net income.Objective: LO2Difficulty: ModerateUse the following information to answer the question(s) below.Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns 80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value and there were not fair value/book value differences for the investments. The separate net incomes for the three affiliated companies for the year ended December 31, 2011 (excluding investment income) are as follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use the conventional approach.Symbols used:P = Income of Paiva on a consolidated basisA = Income of Ackroyd on a consolidated basisB = Income of Bailey on a consolidated basis15) The equation, in a set of simultaneous equations, that computes Paiva Corporation income on a consolidated basis isA) P = $50,000 + 0.8B.B) P = $30,000 + 0.2A.C) P = $100,000 + 0.2A.D) P = $100,000 + 0.8A.Answer: DObjective: LO1Difficulty: Moderate16) Ackroyd's noncontrolling interest share for 2011 isA) $ 7,609.B) $ 8,044.C) $15,652.D) $23,696.Answer: BExplanation: B)P = $100,000 + 0.8AA = $50,000 + 0.8BB = $30,000 + 0.1AA = $50,000 + 0.8 × ($30,000 + 0.1A)A = $50,000 + $24,000 + 0.08A0.92A = $74,000A = $80,435 (rounded)Noncontrolling interest shareAckroyd: $80,435 × 10% outside interest $8,044Objective: LO2Difficulty: Moderate17) Bailey's noncontrolling interest share for 2011 isA) $7,609.B) $8,044.C) $15,652.D) $23,696.Answer: AExplanation: A) (20% × $38,044)Objective: LO2Difficulty: Moderate18) When mutually-held stock involves subsidiaries holding the stock of each other, the ________ method is not used.A) equityB) costC) conventionalD) treasury stockAnswer: DObjective: LO2Difficulty: Moderate19) Raymond Company owns 90% of Rachel Company. Rachel Company owns 10% of Raymond Company. The treasury stock method is used. On the books of Rachel Company, we maintain the Investment in Raymond using the ________ method. The ending balance in Investment in Raymond is________ stockholders' equity in the consolidated balance sheet.A) equity; deducted fromB) cost; deducted fromC) treasury stock; deducted fromD) conventional; added toAnswer: BObjective: LO2Difficulty: Moderate20) On January 1, 2012, Pauline Company acquired 90% of Stephen Company at a cost of $90,000. On January 1, 2012, Stephen Company acquired 10% of Pauline Company at a cost of $10,000.On January 1, 2012, the following data is available:Stephen Company Pauline CompanyCommon Stock $50,000 Common Stock $50,000Retained Earnings $50,000 Retained Earnings $50,000Assets fair value $100,000 Assets fair value $100,000Assets book value $100,000 Assets book value $100,000Liabilities $0 Liabilities $0At December 31, 2012, the following data is available:January 1, 2012 December 31, 2012On Pauline Books:Investment in Stephen $90,000 $105,000On Stephen Books:Investment in Pauline $10,000 $10,000Assuming the treasury stock method is used, what elimination entry is needed for the Investment in Pauline at December 31, 2012?Objective: LO2Difficulty: ModerateExercises1) Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2011 are:Paice $300,000Accardi 160,000Badger 120,000Required:Calculate controlling interest share of consolidated net income and noncontrolling interest shares for Paice Corporation and Subsidiaries for 2011.Answer:Paice Corporation and SubsidiariesIncome Allocation ScheduleFor the year 2011Paice Accardi BadgerSeparate earnings $300,000 $160,000 $120,000Allocate Badger's income:60% to Paice 72,000 (72,000)20% to Accardi ________ 24,000 (24,000)Subtotal $372,000 $184,000 $24,000Allocate Accardi's income:80% to Paice 147,200 (147,200)Controlling interest shareof consolidated net income $519,200 ________ ________Noncontrolling interest share $36,800 $24,000Objective: LO1Difficulty: Moderate2) Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2010 for $700,000 when Abdoo's stockholders' equity consisted of $600,000 of Capital Stock and $200,000 of Retained Earnings.Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2010 for $180,000 when Bach had Capital Stock of $200,000 and Retained Earnings of $50,000. On January 1, 2011, Abdoo acquired a 70% interest in Cabo Corporation for $270,000 when Cabo had Capital Stock of $250,000 and Retained Earnings of $100,000.No change in outstanding stock of any of the affiliated companies has occurred since the investments were made. All cost-book value differentials are goodwill. There are no fair value/book value differentials. The stockholders' equity section of the separate balance sheets of Abdoo, Bach, and Cabo at December 31, 2011 are as follows:Abdoo Bach CaboCapital Stock $600,000 $200,000 $250,000Retained Earnings 280,000 140,000 130,000Total stockholders' equity $880,000 $340,000 $380,000Required:1. Compute the amount at which goodwill should be shown in the consolidated balance sheet of Pacini Corporation and Subsidiaries at December 31, 2011.2. Pacini and Abdoo have applied the equity method correctly. Determine the balances of the three investment accounts at December 31, 2011.Answer:Requirement 1Pacini's investment in Abdoo:Implied fair value ($700,000/0.8) $875,000Total stockholders' equity 800,000Goodwill $75,000Abdoo's investment in Bach:Implied fair value ($180,000/0.6) $300,000Total stockholders' equity 250,000Goodwill $50,000Abdoo's investment in Cabo:Implied fair value ($270,000/0.7) $385,714Total stockholders' equity 350,000Goodwill $35,714Total Goodwill ($35,714 + $75,000 + $50,000) $160,714文档从网络中收集，已重新整理排版.word版本可编辑.欢迎下载支持. Requirement 2Pacini Abdoo's booksEquity Equity Equityin Abdoo in Bach in CaboInvestment cost $700,000 180,000 $270,000Investors' share of equitysince acquisition:Abdoo: ($80,000 × 80%) 64,000Bach: ($90,000 × 60%) 54,000Cabo: ($30,000 × 70%) 21,000Investment account balance $764,000 234,000 $291,000Objective: LO1Difficulty: Moderate3) Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair value/book value differentials associated with each investment. Separate net incomes (excluding investment income) of the affiliated companies for 2011 are:Paik: $600,000 which includes $60,000 unrealized losses on inventory items sold to BenAcdol: $360,000Ben: $340,000 which includes $100,000 unrealized profit on land sold to AcdolRequired:Determine controlling interest share of consolidated net income and noncontrolling interest shares for Paik Corporation and Subsidiaries for 2011.Answer:Paik Acdol BenSeparate incomes $600,000 $360,000 $340,000Plus: Unrealized loss oninventory sales to Ben 60,000Less: Unrealized profitson land sold to Acdol ________ ________ (100,000)Separate realized incomes 660,000 360,000 240,000Allocate Ben:60% to Paik 144,000 (144,000)10% to Acdol ________ 24,000 (24,000)Subtotal $804,000 $384,000 $72,000Allocate Acdol:80% to Paik 307,200 (307,200) ________Controlling interest shareof consolidated net income $1,111,200Noncontrolling interest share $76,800 $72,000Objective: LO1Difficulty: Moderate4) Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation. The separate net incomes (excluding investment income) of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000, respectively. All of the investments were made at times when the investee's book values were equal to their fair values. There were no cost/book value differentials for each investment.Required:Determine the controlling interest share of consolidated net income and noncontrolling interest shares for Packer Corporation and Subsidiaries for the current year.Answer: Packer Abel Bacon CabSeparate incomes $300,000 $100,000 $200,000 $300,000Allocate Cab's income:80% to Bacon ________ ________ 240,000 (240,000)Subtotal 300,000 100,000 440,000 60,000Allocate Bacon's income:95% to Abel ________ 418,000 (418,000)Subtotal 300,000 518,000 22,000 60,000Allocate Abel's income:100% to Packer 518,000 (518,000)Controlling interestshare of consolidatednet income $818,000 ________ ________ ________Noncontrolling interestshare $0 $22,000 $60,000Objective: LO1Difficulty: Moderate5) On January 1, 2011 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2011 are as follows:SeparateEarnings (Loss) DividendsPaki Company $400,000 $150,000Adam Inc (50,000) 90,000Baird Company 100,000 35,000Required:Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2011.Answer:Paki Adam BairdSeparate incomes $400,000 $(50,000) $100,000Allocate Baird 80% ________ 80,000 (80,000)Subtotal $400,000 $30,000 $20,000Allocate Adam 75% 22,500 (22,500)Controlling interest shareof consolidated netincome $422,500Noncontrolling interest share $7,500 $20,000Noncontrolling interest share in Baird $20,000Noncontrolling interest share in Adam 7,500Noncontrolling interest shares $27,500Objective: LO1Difficulty: Moderate6) Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Required:1. Calculate revised net incomes for Paco, Aber, and Back by using the conventional method.2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.Answer:Requirement 1Paco $181,541Aber $90,601Back $59,530Requirement 2Controlling interest share of consolidated net income =$181,541Noncontrolling interest share (in Aber) $90,601 × 5% =$4,530Noncontrolling interest share (in Back) $59,530 × 15% =$8,929Total consolidated net income $195,000Check: Total separate income= $100,000 + $40,000 + $55,000 = $195,000Equations:P = Income of Paco on a consolidated basisA = Income of Aber on a consolidated basisB = Income of Back on a consolidated basisP = $100,000 + 0.90AA = $ 40,000 + 0.85BB = $ 55,000 + 0.05AA = $40,000 + (0.85) × ($55,000 + 0.05A)A = $40,000 + $46,750 + 0.0425AA = $90,601B = $55,000 + (0.05) × ($90,601)B = $59,530P = $100,000 + (0.9) × ($90,601)P = $100,000 + $81,541P = $181,541Objective: LO2Difficulty: Moderate7) Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge Corporation, and Badge Corporation owns 5% of Achan Corporation. The separate net incomes (excluding investment income) of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:1. Calculate revised net incomes for Paine, Achan, and Badge by using the conventional method.2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.Answer:Equations:P = Income of Paine on a consolidated basisA = Income of Achan on a consolidated basisB = Income of Badge on a consolidated basisP = $400,000 + 0.90AA = $160,000 + 0.85BB = $220,000 + 0.05AA = $160,000 + 0.85 × ($220,000 + 0.05A)A = $160,000 + $187,000 + 0.0425A0.9575A = $347,000A = $362,402B = $220,000 + 0.05($362,402) = $238,120P = $400,000 + 0.9($362,402) = $726,162Requirement 1Paine $726,162Achan $362,402Badge $238,120Requirement 2Controlling interest share in consolidated net income $726,162Noncontrolling interest share (from Achan)($362,402 × 5%) 18,120Noncontrolling interest share (from Badge)($238,120 × 15%) 35,718Total consolidated net income $780,000Check: Total separate income = $400,000 + $160,000 + $220,000 = $780,000Objective: LO2Difficulty: Moderate8) Separate earnings and investment percentages for three affiliates for 2011 are as follows:Separate Percentage Interest Percentage InterestEarnings in Acres in BainPalace Company $450,000 80%Acres Inc 200,000 70%Bain Corporation 160,000 10%Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.Required:1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.Answer:Requirement 1Equations:P = Income of Palace on a consolidated basisA = Income of Acres on a consolidated basisB = Income of Bain on a consolidated basisP = $450,000 + 0.8AA = $200,000 + 0.7BB = $160,000 + 0.1AComputations:A = $200,000 + 0.7($160,000 + 0.1A)A = $200,000 + $112,000 + 0.07A0.93A = $312,000A = $335,484P = $450,000 + 0.8 × ($335,484)P = $450,000 + $268,387P = $718,387B = $160,000 + 0.1($335,484)B = $193,548Palace = $718,387Acres = $335,484Bain = $193,548Requirement 2Controlling interest share of consolidated net income $718,387 Noncontrolling interest share (in Acres) (10% × $335,484) 33,548 Noncontrolling interest share (in Bain) (30% × $193,548) 58,064 Total consolidated net income $809,999 Check:Total separate net income ($450,000 + $200,000 + $160,000) $810,000 Objective: LO2Difficulty: Moderate9) Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Abrams Corporation. The separate net incomes (excluding investment income) of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively. Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value.Required:Calculate the controlling interest share of consolidated net income and the noncontrolling interest shares for Padhy Corporation and its subsidiaries. Use the conventional method for your solution.Answer:Requirement 1Equations:P = Income of Padhy on a consolidated basisA = Income of Abrams on a consolidated basisB = Income of Bacud on a consolidated basisP = $300,000 + 0.8AA = $100,000 + 0.6BB = $ 80,000 + 0.1AComputations:A = $100,000 + 0.6($80,000 + 0.1A)A = $100,000 + $48,000 + 0.06A0.94A = $148,000A = $157,447B = $80,000 + 0.1($157,447) = $95,745P = $300,000 + 0.8($157,447) = $425,958Padhy $425,958Abrams $157,447Bacud $95,745Requirement 2Controlling interest share of consolidated net income $425,958Noncontrolling interest share (for Abrams) (10% × $157,447) 15,745Noncontrolling interest share (for Bacud) (40% × $95,745) 38,298Total consolidated net income $480,001Check:Total separate net income ($300,000 + $100,000 + $80,000) $480,000Objective: LO2Difficulty: Moderate10) On January 1, 2011, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000. On January 1, 2011, Sally's total stockholders' equity was $300,000. The fair value and book value of Sally's individual assets and liabilities were equal.On January 2, 2011, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On January 2, 2011, Wrobel's total stockholders' equity was $700,000. The fair value and book value of Wrobel's individual assets and liabilities were equal.For the year ending December 31, 2011, the following data is available:Net income DividendsWrobel Company $50,000 $0Sally Company $30,000 $0The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally. The separate net incomes do not include investment income.Required:1. What is Sally's income from Wrobel for 2011?2. What is Wrobel's income from Sally for 2011?3. What is the noncontrolling interest share associated with Sally Company for 2011?4. Prepare the elimination entry for Sally's Investment in Wrobel Company.Answer:Requirement 1No income from Wrobel because Sally uses the cost method for the Investment in Wrobel and dividends are $0 in 2011.Requirement 2$30,000 × 90% = $27,000Requirement 3$30,000 × 10% = $3,000Requirement 4Treasury stock 70,000Investment in Wrobel Co. 70,000Objective: LO2Difficulty: Moderate。

江西财经大学高级财务会计国际学院题库

Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith)Chapter 13 Accounting for Derivatives and Hedging ActivitiesMultiple Choice Questions1) Which of the following hedging strategies would a business most likely use?A) An importer will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge an exposed net asset position.B) An importer will want to hedge his foreign denominated accounts payable and will purchase forward contracts to hedge an exposed net liability position.C) An exporter will want to hedge his foreign denominated accounts receivable and will purchase forward contracts to hedge an exposed net liability position.D) An exporter will want to hedge his foreign denominated accounts payable and will purchase forward contracts to hedge an exposed net liability position.Answer: BObjective: LO2Difficulty: Easy2) A highly-effective hedge of an existing asset or liability that is reported on the balance sheet would be recorded usingA) Modified Cash Basis Accounting.B) Critical Term Hedge Analysis.C) Fair Value Hedge Accounting.D) Hedge of Net Investment in Foreign Subsidiary.Answer: CObjective: LO2Difficulty: Easy3) Which of the following is not an approach appropriate for hedge accounting?A) Cash Flow Hedge AccountingB) Critical Term Hedge AccountingC) Fair Value Hedge AccountingD) Hedge of Net Investment in Foreign SubsidiaryAnswer: BObjective: LO1, 2Difficulty: Easy4) If a financial instrument is classified as a cash flow hedge, thenA) its gains or losses are reported in the income statement if a fiscal year-end occurs before the settlement date.B) it is classified as a held-to-maturity asset.C) it does not require a notional amount.D) its gains or losses are reported in the balance sheet if a fiscal year-end occurs before the settlement date. Answer: DObjective: LO1Difficulty: Easy5) When a cash flow hedge is appropriate, the effective portion of the gain or loss on the derivative isA) deferred using other comprehensive income.B) recognized immediately at the time the agreement is made.C) recognized over time, amortized over the period of the agreement.D) recognized over time, offset by the fluctuation in the value of the hedged asset or liability.Answer: AObjective: LO1Difficulty: Easy6) Barnes Company entered into a forward contract during the current year to hedge the risk of a material supply cost increase. Based on the current market, at year-end the present value of the estimated amount they will have to pay in ten months is $750,000. What entry would be recorded at year-end closing, assuming that no amount was recorded for this contract until this time?Answer: DObjective: LO3Difficulty: Moderate7) A forward contract used as a cash flow hedge will be recorded as an asset ifA) the holder is expecting to receive a payment as a result of the contract.B) the holder is accounting for the hedged instrument as a fair value hedge.C) the holder is hedging the net investment in a foreign entity.D) the holder is using the alternate accounting method and deferring all gains or losses from the hedge. Answer: AObjective: LO1Difficulty: Easy8) A fair value hedge differs from a cash flow hedge because a fair value hedgeA) cannot be used for firm purchase or sales commitments.B) is not recorded unless it is a highly-effective hedge.C) records gains or losses in the value of the derivative directly to earnings of the company.D) defers the gains or losses in the value of the derivative using Other Comprehensive Income.Answer: CObjective: LO3Difficulty: Easy9) The purchase price of an option contract is typically recorded asA) an expense.B) an asset.C) an amortized cost.D) a component of shareholders equity.Answer: BObjective: LO3Difficulty: Easy10) Taydus Corporation, a U.S. corporation, sold goods on December 2 to a company overseas, and is now carrying a receivable denominated in euros. Taydus signed a 60-day forward contract on that same date to sell euros. The spot rate was $1.40 on the date they signed the contract and the 60-day forward rate was $1.36. At the end of that month when they closed the books at their fiscal year-end, the spot rate was $1.42 and the 30-day forward rate was $1.40. Assume this is a fair value hedge. The forward contract will not be settled net. What would be reported by Taydus for the year ending December 31?A) Net exchange gainB) Net exchange lossC) Deferred exchange gainD) Deferred exchange lossAnswer: BExplanation: B) The spot rate increased $.02, resulting in a gain on the receivable.The forward rate increased $.04, resulting in a larger loss on the forward, thus they experienced a net exchange loss.Objective: LO4Difficulty: Moderate11) Cirtus Corporation, a U.S. corporation, placed an order for inventory from a Mexican supplier on September 18 when the spot rate was $0.0840 = 1 peso. The invoice price will be denominated in pesos. At that time, they entered into a 30-day forward contract (designated as a fair value hedge of the firm commitment to purchase) to purchase 860,000 pesos at a forward rate of $0.0810. On October 18 when the inventory was received, the spot rate was $0.0890. At what amount should the inventory be carried on Cirtus' books?A) $69,660B) $72,240C) $76,540D) $860,000Answer: AExplanation: A) Inventory = 860,000 × .081 = $69,660Objective: LO4Difficulty: Moderate12) When preparing their year-end financial statements, the Warner Company includes a footnote regarding their hedging activities during the year. Which of the following is not required to be disclosed?A) How hedge effectiveness is determined and assessedB) The specific types of risks being hedged, and how they are being hedgedC) Alternative hedging options declinedD) The net gain or loss reported for the period for fair value hedges and where in the financial statements it is reportedAnswer: CObjective: LO5Difficulty: Moderate13) International accounting standards differ from U.S. Generally Accepted Accounting Principles in that International standardsA) require that firm sale or purchase commitments are accounted for as fair value hedges.B) require that firm sale or purchase commitments are accounted for as cash flow hedges.C) state that firm sale or purchase commitments may not be treated as a hedged transaction.D) permit firm sale or purchase commitments to be accounted for as either fair value hedges or cash flow hedges.Answer: DObjective: LO6Difficulty: Moderate14) On May 1, 2011, Listing Corporation receives inventory items from their Bulgarian supplier. At the same time, Listing signed a forward contract to purchase 75,000 Bulgarian lev in sixty days to hedge the inventory purchase at $0.738, the 60-day forward rate. Payment for the inventory will be due in sixty days in Bulgarian lev. Assume the forward contract will be settled net and this qualifies as a fair value hedge. The related exchange rates are shown below:Assuming a present value factor of 1 for simplicity, what is the fair value of this forward contract on May 31?A) $150 assetB) $150 liabilityC) $375 assetD) $375 liabilityAnswer: AExplanation: A)Current forward rate: 75,000 lev × $0.7400 $55,500Contracted forward rate: 75,000 lev × $0.7380 55,350Net change in value 150With PV = 1, Net change = asset valueObjective: LO4Difficulty: ModerateUse the following information to answer the question(s) below.On November 2, 2011, Bellamy Corporation sells product to their Danish customer. At the same time, Bellamy signed a forward contract to sell 200,000 Danish krone in ninety days to hedge the account receivable at$0.1905, the 90-day forward rate. The receivable is expected to be collected in ninety days. Assume the forward contract will be settled net and this is a fair value hedge. The related exchange rates are shown below:15) Assuming a present value factor of 1 for simplicity, what is the fair value of this forward contract on November 2?A) $-0-B) $100 assetC) $100 liabilityD) $38,100 assetAnswer: AObjective: LO4Difficulty: Moderate16) Assuming a present value factor of 1 for simplicity, what is the fair value of this forward contract on December 31?A) $160 assetB) $160 liabilityC) $140 assetD) $140 liabilityAnswer: DObjective: LO4Difficulty: Moderate17) Assuming a present value factor of 1 for simplicity, what is the fair value of this forward contract on January 31?A) $-0-B) $ 60 assetC) $160 liabilityD) $200 liabilityAnswer: DObjective: LO4Difficulty: ModerateUse the following information to answer the question(s) below.On December 1, 2011, Thomas Company, a U.S. corporation, purchases inventory from a vendor in Italy for 400,000 euros. Payment is due in 90 days. To hedge the transaction, Thomas signs a forward contract to buy 400,000 euros in 90 days at $1.3670. Thomas uses a discount rate of 6% (present value factor for 30 days= .9950; 60 days = .9901; 90 days = .9851). Assume the forward contract will be settled net and this is a cash flow hedge. Currency exchange rates are shown below:18) What is the fair value of the forward contract at December 31, 2011?A) $400.00 liabilityB) $400.00 assetC) $396.04 liabilityD) $396.04 assetAnswer: CExplanation: C)Current forward rate: 400,000 euros × $1.3660 $546,400Contracted forward rate: 400,000 euros × $1.3670 546,800Net change in value (400)PV for 60 days 6% .9901Fair value of forward contract on 12/31/11 $ (396.04)Objective: LO4Difficulty: Moderate19) What is the fair value of the forward contract at January 30?A) $796 liabilityB) $796 assetC) $800 liabilityD) $800 assetAnswer: BExplanation: B)Current forward rate: 400,000 euros × $1.369 $547,600Contracted forward rate: 400,000 euros × $1.367 546,800Net change in value 800PV for 30 days 6% .9950Fair value of forward contract on 1/30/12 $ 796Objective: LO4Difficulty: Moderate20) What is the fair value of the forward contract at February 29?A) $-0-B) $1,654.97 assetC) $1,654.97 liabilityD) $1,680 assetAnswer: DExplanation: D) Current forward rate: 400,000 euros × $1.3712$548,480 Contracted forward rate: 400,000 euros × $1.367 546,800 Net change in value 1,680 PV for 0 days 6% 1.0 Fair value of forward contract on 2/29/12 $1,680 Objective: LO4Difficulty: ModerateExercises1) On November 1, 2011, Portsmith Corporation, a calendar-year U.S. corporation, invested in a purely speculative contract to purchase 1 million yen on January 30, 2012, from the Karoke Trading Company, a Japanese brokerage firm. Portsmith agreed to purchase 1,000,000 yen from Karoke at a fixed price of$0.0100 per yen. Karoke agreed to transmit 1,000,000 yen to Portsmith on January 30. Net settlement is not permitted. The spot rates for yen are:Nov 01, 2011 1 yen = $0.0097Dec 31, 2011 1 yen = $0.0104Jan 30, 2012 1 yen = $0.0106The 30-day forward rate for yen on December 31, 2011 was $0.0104.Required:Prepare the General Journal entries that Portsmith would record on November 1, December 31, and January 30.Answer:Portsmith's General Journal11/01/11 Contract Receivable (yen) 10,000Contract Payable 10,000(1,000,000 × $0.0100)12/31/11 Contract Receivable (yen) 400Exchange Gain 400[1,000,000 × ($0.0104 - $0.0100)]01/30/12 Contract Receivable (yen) 200Exchange Gain 200[1,000,000 × ($0.0106 - $0.0104)]Cash (yen) 10,600Contract Payable 10,000Cash 10,000Contract Receivable (yen) 10,600Objective: LO4Difficulty: Moderate2) On November 1, 2011, Ross Corporation, a calendar-year U.S. corporation, invested in a purely speculative contract to purchase 1 million euros on January 30, 2012, from Trattoria Company, an Italian brokerage firm. Ross agreed to purchase 1,000,000 euros from Trattoria at a fixed price of $1.420 per euro. Trattoria agreed to transmit 1,000,000 euros to Ross on January 30, 2012. Net settlement is not permitted. The spot rates for euros are:Nov 01, 2011 1 euro = $1.415Dec 31, 2011 1 euro = $1.395Jan 30, 2012 1 euro = $1.410The 30-day futures rate for euros on December 31, 2011 was $1.405.Required:Prepare the General Journal entries that Ross would record on November 1, December 31, and January 30. Answer:Ross's General Journal11/01/11 Contract Receivable (euro) 1,420,000Contract Payable 1,420,000(1,000,000 × $1.420/euro)12/31/11 Exchange Loss 15,000Contract Receivable (euro) 15,000{1,000,000 × ($1.405 - $1.420)}01/30/12 Contract Receivable (euro) 5,000Exchange Gain 5,000{1,000,000 × ($1.410 - $1.405)}Cash (euro) 1,410,000Contract Payable 1,420,000Cash 1,420,000Contract Receivable (euro) 1,410,000Objective: LO4Difficulty: Moderate3) On June 1, 2011, Dapple Industries purchases an option contract for $5,000 on 10,000 gallons of aviation gas to minimize its purchasing cost price exposure. At the time, the market price is $2.50 per gallon and the option price of $2 per gallon will expire 6 months later. Dapple can exercise the option at its discretion. When Dapple prepares quarterly reports on June 30, Dapple is still holding the option. On June 30, the market price of aviation gas is $4.50 per gallon. The option is to be settled net.On August 1, Dapple exercises the option when the gas market price is $5.00 per gallon and purchases 40,000 gallons of gas. On August 15, Dapple uses all of the gas on a charter flight.Required:What are Dapple's journal entries with regard to the aviation gas option? Assume this is a cash flow hedge. Ignore the time value of money.Answer:Dapple's General Journal6/01/11 Aviation gas contract option 5,000Cash 5,0006/30/11 Aviation gas contract option 20,000Other comprehensive income 20,000(($4.50-$2.00) × 10,000 gallons =fair value debit balance of $25,000;unadjusted debit balance = $5,000from June 1 entry.)8/01/11 Cash 30,000Aviation gas contract option 25,000Other comprehensive income 5,000(Net settlement = ($5 - $2) × 10,000 gallons = $30,000 received)Aviation gas inventory 200,000Cash 200,000(40,000 gallons × $5 per gallon)8/15/11 Cost of goods sold 200,000Aviation gas inventory 200,000Other comprehensive income 25,000Cost of goods sold 25,000Objective: LO3Difficulty: Difficult4) On November 1, 2011, Moddel Company (a U.S. corporation) entered into a 90-day forward contract to purchase 200,000 British pounds. The purpose of the forward contract is to hedge a commitment to purchase special equipment on January 30, 2012 from a British firm Jeckyl Inc. The invoice price on the purchase commitment is denominated in British pounds. The forward contract is not settled net. Assume Moddel uses a 12% interest rate. Use a fair value hedge.The relevant exchange rates are stated in dollars per pound:Forward RateSpot Rate to Jan. 30, 2012November 1, 2011 $1.32 $1.35December 31, 2011 $1.47 $1.50January 30, 2012 $1.55 -Required:1.What journal entry did Moddel record on November 1, 2011?2.What journal entries did Moddel record on December 31, 2011?3.What journal entries did Moddel record on January 30, 2012 if the purchase was made?Answer:11/01/11 Contract receivable (pounds) 270,000Contract payable 270,000(200,000 × $1.35)12/31/11 Contract receivable (pounds) 30,000Exchange gain 30,000200,000 × ($1.50 - $1.35)Exchange loss 30,000Change in value of firmcommitment in pounds 30,000200,000 × ($1.50 - $1.35)01/30/12 Exchange loss 10,000Change in value of firmcommitment in pounds 10,000 200,000 × ($1.55 - $1.50)Contract receivable (pounds) 10,000Exchange gain 10,000 200,000 × ($1.55 - $1.50)Contract payable 270,000Cash 270,000Cash (pounds) 200,000 × $1.55 310,000Contract receivable (pounds) 310,000Equipment 270,000Change in value of firm commitment 40,000in poundsAccounts payable (pounds) 310,000Accounts payable (pounds) 310,000Cash (pounds) 310,000 Objective: LO3Difficulty: Difficult5) On November 1, 2010, Mayberry Corporation, a U.S. corporation, purchased from Cantata Corporation, a Mexican company, some machinery that cost 1,000,000 pesos. The invoice was payable in pesos on January 30, 2011. To hedge against rapid changes in the peso, Mayberry entered into a forward contract on November 1, 2010 with AB Trader & Company, a US brokerage and investment firm. The contract specified that Mayberry would buy 1,000,000 pesos from AB Trader at $0.084 per peso for settlement on January 30, 2011.Assume that all three companies are subject to the same accounting standards and have December 31st year-ends. The spot rates for pesos on November 1, December 31, and January 30, are $0.082, $0.080, and $0.089, respectively. The 30-day forward rate for pesos on December 31, 2010 is $0.083. The forward contract is not settled net.Required:Record General Journal entries for Mayberry Corporation on November 1, December 31, and January 30. If no entry is required on a particular date, indicate "No entry" in the General Journal. This is a fair value hedge.Answer:Mayberry's General JournalDate Account Name Debit Credit 11/01/10 Machinery 82,000Accounts Payable (pesos) 82,00011/01/10 Contract Receivable (pesos) 84,000Contract Payable 84,00012/31/10 Accounts Payable (pesos) 2,000Exchange Gain 2,000 ((.082 - .080) × 1,000,000)12/31/10 Exchange Loss 1,000Contract Receivable (pesos) 1,000 [($.083 - $.084) × 1,000,000]01/30/11 Exchange Loss 9,000Accounts Payable (pesos) 9,000 [(.089 - .080) × 1,000,000]Contract Receivable (pesos) 6,000Exchange Gain 6,000 [(.089 - .083 ) × 1,000,000]Cash (pesos) 89,000Contract payable 84,000Contract Receivable (pesos) 89,000Cash 84,000Accounts Payable (pesos) 89,000Cash (pesos) 89,000 Objective: LO4Difficulty: Moderate6) On November 1, 2010, Athom Corporation purchased 5,000 television sets for its merchandise inventory from Sockk, a South Korean firm, at a total quoted cost of 600,000,000 won (W). On this date, the spot rate for the won was $1 = 1,080W. On the same day, Athom invested $500,000 cash in a non-interest bearing account with a Japanese bank, to hedge its exposed liability position. The account payable to Sockk is due on January 30, 2011. The exchange rates on December 31, 2010 and January 30, 2011 were $1 = 1,060W, and $1 = 1,030W, respectively. Athom agreed to pay Sockk in won. The bank deposit made by Athom will be held in won, but will be withdrawn in dollars by Athom on January 30th. Assume that Athom has a December 31 year-end. Assume this is a fair value hedge.Required:Prepare all the journal entries for Athom Corporation's General Journal on November 1, 2010, December 31, 2010, and January 30, 2011. Round entries to the nearest whole dollar. If no entry is required on a particular date, indicate "No entry" in the General Journal.Answer:Athom's General Journal11/01/10 Inventory 555,556Accounts Payable (won) 555,556 (600,000,000/1,080W per $1)Cash (won) 500,000Cash 500,000 Value of deposit in won:$500,000 × 1,080 won per $1 =540,000,000 won12/31/10 Cash (won) 9,434Exchange Loss 10,482Accounts Payable (won) 10,482Exchange Gain 9,434Account Payable:600,000,000/1,060W = $566,038$566,038 - $555,556 = $10,482Cash (won):540,000,000/1,060W = $509,434$509,434 - $500,000 = $9,43401/30/11 Cash (won) 14,838Exchange Loss 16,486Exchange Gain 14,838Accounts Payable (won) 16,486Account Payable:600,000,000/1,030W = $582,524$582,524 - $566,038 = $16,486Cash (won):540,000,000/1,030W = $524,272$524,272 - $509,434 = $14,838Accounts Payable (won) 582,524Cash (won) 582,524Cash 524,272Cash (won) 524,272 Objective: LO3Difficulty: Moderate7) On November 1, 2010, Stateside Company (a U.S. manufacturer) sold an airplane for 1 million New Zealand dollars (NZ$) to New Zealand company Aukland Corporation. Stateside will receive payment on January 30, 2011 in New Zealand dollars. In order to hedge the accounts receivable position, Stateside entered into a 90-day forward contract to sell 1 million New Zealand dollars on January 30, 2011. On November 1, 2010, the 90-day forward rate is US$0.73 per New Zealand dollar. The forward contract will be settled net. Account for the hedge as a fair value hedge. Ignore the time value of money.The relevant exchange rates per New Zealand dollar:Spot Rate Forward Rate to 1/30/11Nov. 1, 2010 US$0.73 US$0.73Dec. 31, 2010 US$0.75 US$0.76Jan. 30, 2011 US$0.79 US$0.79Required:Record the journal entries that Stateside would need to prepare at November 1, 2010, December 31, 2010 and January 30, 2011.December 31, 2010 is the fiscal year end.Answer:Stateside's General Journal11/1/10 Accounts receivable (NZ$) 730,000Sales 730,00012/31/10 Accounts Receivable (NZ$) 20,000Exchange gain 20,000Loss on forward contract 30,000Forward contract 30,000(($.76 - $.73) × 1,000,000 = $30,000)01/30/11 Accounts Receivable (NZ$) 40,000Exchange gain 40,000Loss on forward contract 30,000Forward contract 30,000(($.79 - $.76) × 1,000,000 = $30,000)Cash 790,000Accounts receivable 790,000Forward contract 60,000Cash 60,000Objective: LO4Difficulty: Moderate8) On November 1, 2010, Ironside Company (a U.S. manufacturer) sold an airplane for 1 million New Zealand dollars (NZ$) to a New Zealand company, Wellington Corporation. Ironside will receive payment on January 30, 2011 in New Zealand dollars. In order to hedge the accounts receivable position, Ironside entered into a 90-day forward contract on November 1, 2010 to sell 1 million New Zealand dollars. On November 1, 2010, the forward rate is US$0.79 per New Zealand dollar. The forward contract will be settled net. This is a fair value hedge. Ignore the time value of money.The relevant exchange rates per New Zealand dollar:Spot Rate Forward Rate to 1/30/11Nov. 1, 2010 US$0.79 US$0.79Dec. 31, 2010 US$0.75 US$0.76Jan. 30, 2011 US$0.73 US$0.73Required:Record the journal entries that Stateside would need to prepare at November 1, 2010, December 31, 2010 and January 30, 2011.December 31 is the fiscal year end.Answer:Ironside's General Journal11/1/10 Accounts receivable (NZ$) 790,000Sales 790,00012/31/10 Exchange loss 40,000Accounts Receivable (NZ$) 40,000Forward Contract 30,000Gain on forward contract 30,000(($.79 - $.76) × 1,000,000 = $30,000)01/30/11 Exchange loss 20,000Accounts Receivable (NZ$) 20,000Forward contract 30,000Gain on forward contract 30,000(($.76 - $.73) × 1,000,000 = $30,000)Cash 790,000Forward contract 60,000Accounts receivable 730,000Objective: LO4Difficulty: Moderate9) Onoly Corporation (a U.S. manufacturer) sold parts to its customer in Hong Kong on December 8, 2011 with payment of 500,000 Hong Kong Dollars (HKD) to be received in sixty days on February 6, 2012. Onoly has a December 31 year end. The following exchange rates apply:Spot Rate Forward Rate to February 6December 8, 2011 $.1150 $.1150December 31, 2011 $.1300 $.1250February 6, 2012 $.1400 $.1400Required:1. Assuming no forward contract is taken, what is the amount of foreign currency exchange gain or loss that would be recorded in 2011, and in 2012?2. Assuming a 60-day forward contract is taken on December 8 with the intent of hedging this foreign currency transaction, and that this hedge is properly accounted for as a cash flow hedge, what is the net effect on income to be recorded in 2011, and in 2012?Answer:Requirement 1Calculation of Onoly Gain/(Loss) for 2011:Receivable in dollars at 12/08/11(500,000 HKD × $.115) $57,500Receivable in dollars at 12/31/11(500,000 HKD × $.13) 65,000Increase in Receivable (Onoly Gain) $7,500Calculation of Onoly Gain/(Loss) for 2012:Receivable in dollars at 12/31/11(500,000 HKD × $.13) $65,000Receivable in dollars at 2/6/12(500,000 HKD × $.14) 70,000Increase in Receivable (Onoly Gain) $5,000Requirement 2If accounted for as a cash flow hedge, the amount of gain from the Accounts receivable will be offset by an equal amount of loss that is credited to Other comprehensive income. The amount of loss from the Accounts receivable will be offset by an equal amount of gain that is debited to Other comprehensive income. The end result is a net income effect of -0- for both years.Objective: LO4Difficulty: Moderate10) Slickton Corporation, a U.S. holding company, enters into a forward contract on November 1, 2011 to speculate in Singapore dollars (S$). The forward contract requires Slickton to sell 1,000,000 Singapore dollars to the exchange broker on January 30, 2012. Net settlement is not permitted. Relevant exchange rates for the Singapore dollar are listed below:Required:Prepare the journal entries required by Slickton on November 1, 2011, December 31, 2011 (year end), and January 30, 2012.Answer:11/1/11 Contract receivable $804,000Contract payable (S$) $804,000To record contract to sell 1,000,000 S$'s to exchange broker in 90 days for the forwardrate of $.804.12/31/11 Contract payable (S$) $12,000Exchange gain $12,000To adjust contract payable in S$'s to the 30-day forward rate of $.792.1/30/12 Contract payable (S$) $792,000Exchange loss 10,000Cash (S$) $802,000To record payment of S$1,000,000 to exchange broker when spot rate is $.802.Cash $804,000Contract receivable $804,000To record receipt of U.S. dollars from exchange broker in settlement of account.Objective: LO4Difficulty: Moderate11) Wild West, Incorporated (a U.S. corporation) sold inventory to a company in the Philippines for 1,600,000 pesos on account on February 1, 2011, with payment expected in 90 days. Wild West entered into a forward contract to hedge this transaction, and properly accounts for the transaction as a cash flow hedge. Wild West has a March 31 fiscal year end, and uses an 8% discount rate, resulting in a 30-day present value factorof .9934. The forward contract is settled net. The relevant exchange rates are shown below:Required:Record the journal entries needed by Wild West on February 1, March 31, and May 2. Round all entries to the nearest whole dollar.Answer:2/1/11 Accounts receivable (peso) 36,640Sales 36,640(1,600,000 × 0.0229)3/31/11 Accounts receivable (peso) 4,000Exchange gain 4,000(1,600,000 × (0.0254 - 0.0229))Forward contract 318Other comprehensive income 318Current forward rate: 1,600,000 pesos × $0.0268 $42,880Contracted forward rate: 1,600,000 pesos × $0.0270 43,200Net change in value 320PV for 30 days 6% .9934Fair value of forward contract on 3/31/11 $ 318Exchange loss 4,000Other comprehensive income 4,000Other comprehensive income 4,252Exchange gain 4,252Discount rate = 0.00056435% per month$2,068 + $2,184= $4,252$2,068 = 0.056435 × $36,640$2,184 = [0.056435 × ($36,640 + $2,068)]。

江西财经大学国际会计题库最新版

Test Bank for Chapter 1Multiple Choice Questions1.Which of the following variables play a role in shaping accounting development?a. nature of capital marketsb. type of reporting regimec. type of business entitiesd. All of the above.e. Both a and c.2. High levels of financial disclosure are generally found in countriesa. where businesses raise their capital from a large and diverse investor/creditor group.b. where businesses raise their capital from the government.c. where there is a limited number of owners.d. where the sophistication of the financial community is not very high.e. where the cost of publishing financial statements is high.3. In countries where business capital needs are provided by only a few very large banksa. the level of disclosure in financial statements tends to be high.b. companies tend to devote significant resources to make their annual reports attractive.c. companies tend to use income-increasing accounting methods.panies tend to understate reported earnings.e. All of the above.4. Which of the following does not affect a country's financial accounting orientation?a. The level of inflation.b. Political and economic ties with other countries.c. Status of the accounting profession.d. Quality of accounting education.e. All of the above affect a country's financial accounting orientation.5. In countries with micro-oriented accounting systems, the role of accounting isa.to provide investors with information on the true position of companies.b. to reflect the effect of government economic policies in company accounts.c. to provide inputs for industry or national accounting reports.d. to determine the tax liability of business entities.e. All of the above.6. Which of the following is not true about accounting's role in a macro-oriented environment,a. to provide investors with information on the true position of companies.b. to reflect the effect of government economic policies in company accounts.c. to provide inputs for industry or national accounting reports.d. to determine the tax liability of business entities.e. All of the above.7. Which of the following is not an environmental factor affecting accounting?a. Level of enforcement of regulationsb. Nature of capital marketsc. Type of legal systemd. Languagee. Level of inflation8. Companies in which country produce annual reports to attract potential investors:a. Germanyb. Switzerlandc. United Statesd. Japane. France9. In which pair of countries is there a strong private sector influence on financial accountingstandard setting?a. France and Germany.b. China and Russia.c. France and the United Kingdom.d. Germany and Japan.e. The United Kingdom and the United States.10. Which of the following is an impetus for international accounting standards?a. The linkage of capital markets worldwide.b. Emerging democracies in Latin Americac. The new activist role of the OECDd. The collapse of communism in the former Soviet Unione. The emergence of the World Trade Organization (WTO)11. Among the factors affecting accounting development are the economic and political tiesbetween countries. Which of the following pairs of countries do not have such ties with each other?a. Philippines and the United Statesb. Singapore and the United Kingdomc. Malaysia and Argentinad. Indonesia and the Netherlandse. France and Germany12. The status of the accounting profession is a factor that affects accounting development incountries. In which of the following countries is accounting not regarded favorably as a career choice?a. United Statesb. New Zealandc. Russiad. Australiae. Canada13. Which of the following is not typically included in an accounting conceptual framework?a. a statement of objectives of financial accountingb. targeted users of financial statementsc. limitations of financial statementsd. licensing criteria for public accountantse. characteristics of good financial accounting14. Which of the following countries have conceptual frameworks for accounting?a. Singaporeb. Malaysiac. Indonesiad. Canadae. All of the above15. Identify the benefit(s) of classifying countries according to their accounting systems.a. Countries can learn from the accounting experiences of other countries in their group.b. Countries can use other countries in their group as models for setting standards.c. Global standard-setters can anticipate the reaction to their proposed standards.d. MNCs can plan on the type of disclosure they need to provide in various countries.e. All of the above.16. Which of the following accounting patterns did Mueller [1967] identify in his pioneeringclassification study on Western, market-oriented economies?a. Macroeconomic patternb. Microeconomic patternc. Independent discipline approachd. Uniform approache. All of the above17. Which of the following was not among the accounting patterns identified by Mueller [1967]in his pioneering classification study on Western, market-oriented economies?a. Macroeconomic patternb. Independent discipline approachc. Socialist approachd. Uniform approache. Microeconomic pattern18. Nobes' [1983] classification study had the following European countries in the macro-uniform, continental, tax-based family:a.Italy, France, W. Germany, Swedenb. Belgium, Spain, Italy, W. Germanyc. Italy, France, Spain, Swedend. Italy, France, Ireland, Spaine. Italy, France, Belgium, Spain19. Nobes' [1983] classification study had the following countries in the micro-based, U.K.influence, family:a.Ireland, Netherlands, Canada, Australiab. Australia, New Zealand, U.K., Irelandc. Netherlands, Australia, U.K., U.S.Ad. Australia, Canada, U.K., Irelande. Netherlands, Australia, Canada, U.S.A.20. The major immediate challenges that face accounting in the global arena include:a. Global harmonizationb. Financial reporting in emerging economiesc. Social and environmental reportingd. Financial reporting in the high technology erae. All of the aboveTrue/False Questions1.The purpose of accounting is to provide information that is useful for making economicdecisions.2. In order to make informed decisions in a global environment, one needs to have anunderstanding of international accounting issues.3. The flow of goods and services across national borders requires that accounting standards becountry-specific.4. The phenomenal pace of globalization of capital markets in recent years points to the needfor capital market participants to understand accounting information that originates in other countries.5. Being educated in international accounting is among the portfolio of skills required ofmanagers in companies engaged in international business.6. While accounting is a product of its environment it does not affect the environment in whichit exists.7. In the United States, financial accounting information is directed primarily toward the needsof investors and creditors, and decision usefulness is the main criterion for judging itsquality.8. Accounting in the United States is increasingly feeling the influence of Swiss accountingstandards, as more and more Swiss companies enter U.S. capital markets.9. The factors that impact accounting at the national level do not contribute to accountingdiversity at the international level.10. In equity-oriented capital markets, companies rely on the fairness of their bankers to obtainthe necessary capital.11. Whether a country's capital market is equity-oriented or debt-oriented has no impact on thefinancial reporting that develops in the country.12. In countries such as Germany, Japan, and Switzerland companies have traditionally turnedto the stock market as their primary source of capital.13. In countries such as Canada and the United States, once companies reach a certain size theyturn to banks as their primary source of capital.14. The type of capital market that exists in a country impacts financial reporting at both thecosmetic and the substantive level.15. Considerably more resources are devoted to the preparation of annual reports in debt-oriented capital markets than in equity-oriented capital markets.16. Countries such as Austria and Germany set detailed financial reporting rules which have tobe complied with for both tax reporting and external financial reporting.17. In code law countries such as France and Germany, accounting is regulated mainly throughan accounting code which is generally set by the legislature.18. Financial reporting in common law countries tends to be more transparent and timely than incode law countries.19. While it is relatively inexpensive to adopt the sophisticated accounting standards of anothercountry, it takes considerable resources to actually implement such standards.20. Recent statistics show that the U.S. has the highest number of auditors relative to the size ofits population (i.e., auditors per 100,000 population).21. The lack of financial reporting transparency and the inconsistent application of auditstandards were among the factors that exacerbated the recent financial crisis in Southeast Asia.22. In macro-user oriented systems, government entities such as tax and economic planningagencies are the principal users of accounting reports.23. In micro-user oriented accounting systems such as those in France, Germany, and Sweden,the role of accounting is viewed in terms of contributing to enterprise stability andcontinuity.24. Financial accounting diversity between countries imposes additional costs on capital marketparticipants worldwide.25. The object of classification (or clustering) in international accounting research is to groupcountries according to the common elements and distinctive characteristics of theiraccounting systems.Solutions to Chapter 1 Test Questions Multiple Choice Questions1.D 6. A 11. C 16. E2. A 7. D 12. C 17. C3. D 8. C 13. D 18. E4. E 9. E 14. E 19. B5. A 10. A 15. E 20. ETrue/False Questions1.T 6. F 11. F 16. T 21. T2. T 7. T 12. F 17. T 22. T3. F 8. F 13. F 18. T 23. F4. T 9. F 14. T 19. T 24. T5. T 10. F 15. F 20. F 25. TTest Bank for Chapter 2Multiple Choice Questions1.In the United States, the Financial Accounting Standards Boarda. establishes accounting principles for business and not for profit entities.b. is the enforcement agency responsible for monitoring that companies comply withaccounting and securities regulations.c. receives funding from the U.S. government.d. establishes the tax code that companies must comply with.e. is the representative of the U.S. accounting profession on the IASB.2. The main body that enforces financial accounting standards in the United States isa. The U.S. Accounting Enforcement Agency (USAEA)b. The Financial Accounting Standards Board (FASB)c. The Securities Exchange Commission (SEC)d. The American Institute of Certified Public Accountants (AICPA)e. All of the above.3. What is an argument against the effort to harmonize accounting globally?a. Market forces will bring about harmonization if it is truly necessary.b. Investors are rational enough to spend the resources necessary to correctly analyzeinvestment opportunities and focus on real economic results.c. It is unnecessary since most countries already accept U.S. generally acceptedaccounting principles as the standards to be followed in preparing financial statements.d. Better training of accountants mitigates the need for accounting harmonization.e. The Big Four accounting firms would lose significant revenues if accounting rules wereharmonized globally.4. The key developmental organization for international accounting standards is thea. International Accounting Standards Board.b. International Federation of Accountants.c. International Organization of Securities Commissions.d. International Organization of Accounting Standard Setters.e. Global Agency for Accounting Standards.5. The Organization for Economic Cooperation and Development is nota. comprised of the governments of nearly all the industrialized world.b. actively participating in writing generally accepted accounting principles for the world.c. established to foster economic growth and development in member countries.d. responsible for issuing a code of conduct for multinational corporations that includesguidelines for voluntary disclosures of financial information.e. any of the above.6. Which of the following organizations is directly involved with developing, publishing, andadvocating the use of financial accounting standards?a. American Institute of Certified Public Accountantsb. Organization for Economic Cooperation and Development.c. Nordic Federation of Accountants.d. International Accounting Standards Board.e. International Federation of Accountants.7. Which of the following organizations is directly involved with developing, publishing, andadvocating the use of international auditing standards?a. International Accounting Standards Board.b. Institute of Chartered Accountants of England and Wales.c. United Nations.d. Asean Federation of Accountants.e. International Federation of Accountants.8. Which of the following organizations is directly involved with harmonizing accounting andauditing standards?a. International Accounting Standards Board.b. Securities and Exchange Commission.c. American Accounting Association.d. International Federation of Accountants.e. Both (a) and (d).9. Global harmonization of accounting principles does not require:a. Complete uniformity in accounting principles globally.b. That differences in accounting standards between countries be kept at a minimum.c. That difference in accounting rules may exist in different countries as long as they canbe reconciled.d. That one supra-national organization enforce global standards in all countries.e. Both (a) and (d).10. Current proponents of harmonizing accounting standards globally area. Investors.b. Multinational companies.c. The securities industry and stock exchanges.d. Developing countries.e. All of the above.11. The International Federation of Accountants (IFAC) is not involved in:a. harmonizing global auditing practices.b. providing ethical guidelines for auditors on issues such as integrity and objectivity.c. establishing public sector standards applicable to all levels of government.d. maintaining auditor independence in today's complex business environment.e. administering a worldwide uniform examination for auditors.12. The "world class issuer" approach to global accounting harmonization is not very promisingbecause:a. it is opposed by the U.S. Securities and Exchange Commission.b. there are difficulties in establishing and agreeing upon the criteria for inclusion.c. it faces strong opposition by U.S. companies.d. there are practical difficulties in implementation.e. of all of the above.13. The G4+1 originally consisted of accounting standard-setters from the following countriesplus the International Accounting Standards Committee:a. Australia, Canada, New Zealand, and the United Kingdomb. Bangladesh, India, Pakistan, and Sri Lankac. Indonesia, Japan, Korea, and Malaysiad. Australia, Canada, the United Kingdom and the United Statese. None of the above.14. The different types of articles found in European Union (EU) directives include:a. uniform rules to be implemented in all member countriesb. minimum rules that may be strengthened by individual governmentsc. alternative rules which give member states choicesd. All of the abovee. Only (a) and (b)15. The European Union (EU) has adopted a number of directives dealing with accountingmatters. Which EU directives are generally regarded as the most significant on accounting issues?a. The First and Second directivesb. The Fourth and Seventh directivesc. The Second and Fourth directivesd. The Third and Seventh directivese. The Fifth and Sixth directives16. The overall lack of success of the European accounting harmonization effort can beattributed to:a. The scope of the EU directives is technically incomplete with a number of accountingtopics not being directly covered.b. The directives were unevenly adopted into individual national legislation.c. The directives were static instruments that were not updated and lacked qualityimprovement mechanisms.d. Compliance with EU accounting rules did not prove to be sufficient to enter globalcapital markets.e. All of the above.17. Which of the following statements best describes accounting harmonization in Europe?a. It has been a tremendous success and is being closely studied by other regional alliances.b. There is considerable evidence of accounting harmonization among EU countries.c. The EU has decided to turn to the IASB to achieve accounting harmonization.d. The ASEAN countries are following the EU model of accounting harmonization.e. Annual reports of companies from France, Germany, and the United Kingdom havebecome standardized as a result of the European accounting harmonization initiative. 18. The necessary conditions that can make regional accounting harmonization a policyobjective among a group of countries include:a. An articulated rationale and a set of values that facilitate regional accounting harmony.b. A high level of economic integration.c. A political infrastructure to pursue harmonization within a broad policy framework.d. The economic and political clout to develop a regional vision without the fear of beingmarginalized in the global arena.e. All of the above.19. The reasons why regional accounting harmonization has not been seriously pursued by themember countries of the Association of Southeast Asian Nations (ASEAN) are:a. ASEAN has not been able to articulate a clear rationale for why regional accountingharmonization is a preferred course of action for its member countries.b. ASEAN lacks a political infrastructure to pursue harmonization within a broad policyframework.c. ASEAN countries are mainly developing countries with young accounting traditionsand face greater risks of being marginalized in the global arena by developing theirdistinct regional system.d. ASEAN countries are not sufficiently integrated economically to warrant regionalaccounting harmonization.e. All of the above.20. Which of the following countries was not a signatory of the Treaty of Rome of 1957 whichled to the formation of the European Economic Community?a. The Netherlandsb. Francec. Italyd. Luxembourge. The United KingdomTrue/False Questions1.When accounting standards vary around the world, the inherent reliability of financialstatements will also vary.2. Accounting harmonization is the process by which differences in financial reportingpractices among countries are reduced in order to make financial statements morecomparable and decision-useful across countries.3. The primary economic rationale for accounting harmonization is that major differences inaccounting practices act as a barrier to capital flowing to the most efficient users.4. There is a concern that some developing countries might adopt international accountingstandards to gain global respectability for their financial reporting without consideringwhether these standards are suitable for their economies.5. Most developing countries have the time and the resources to develop their own indigenousaccounting standards.6. The adoption of international accounting standards in countries is a purely technical matterthat is not subject to political lobbying.7. Politically it is easier for countries to adopt external standards promulgated by asupranational organization such as the IASB rather than to adopt the standards of another country.8. The World Bank and United Nations recently opined that the inconsistent application ofauditing standards around the world adversely affects the comparability of financialstatements from one country to the next.9. The International Accounting Standards Board was formed to develop global accountingstandards; compliance with IASB standards is mandatory worldwide.10. Non-U. S. firms that issue securities in the United States must abide by the rules of the SEC.11. The Organization for Economic Cooperation and Development issues accounting directiveswhich have the full weight of law behind them.12. In international accounting, harmonization is a movement away from total diversity whilestandardization is a movement towards uniformity.13. In international accounting, harmonization and standardization are states while harmonyand uniformity are processes.14. The IASC's early standards were criticized for being too narrow and for allowing too fewalternatives.15. In the 1970s, a United Nations committee produced a list of financial and non-financialdisclosures (to be provided by MNCs) which were heartily endorsed by most industrialized countries.16. The Multijurisdictional Disclosure System negotiated between Canada and the United Statesrepresents a very promising model for global accounting harmonization.17. The New York Stock Exchange strongly opposes the "world class issuer" approach to globalaccounting harmonization.18. The G4+1 presently consisted of standard-setters from Australia, Canada, New Zealand, theUnited Kingdom, the United States and the International Accounting Standards Committee.19. The basic objective of the European Union (EU) is to bring about a common market whichallows for the free mobility of capital, goods and people between member countries.20. Of the European Union (EU) directives, the Fourth Directive and the Seventh Directive aregenerally regarded as the most significant on accounting matters.21. The European accounting harmonization effort has been a resounding success and is beingcopied in Asia and Africa.22. The ASEAN countries have followed the regional harmonization paradigm modeled afterthe European Union (EU) rather than the global harmonization paradigm represented by international accounting standards.23. The global accounting harmonization paradigm makes more sense for ASEAN countriesthan the regional harmonization paradigm because ASEAN countries are more dependent economically on their global trading partners than on other ASEAN member countries. 24. Japan, Korea, Singapore, and Thailand have harmonized their accounting as a result of theirmembership in the Association of Southeast Asian Nations (ASEAN).25. Global accounting harmonization has not been pursued in ASEAN because the requisiteconditions that would make it an important policy objective are not present.Solutions to Chapter 2 Test Questions Multiple Choice Questions1.A 6. D 11. E 16. E2. C 7. E 12. E 17. C3. A 8. E 13. D 18. E4. A 9. E 14. D 19. E5. B 10.E 15. B 20. ETrue/False Questions1.T 6. F 11. F 16. F 21. F2. T 7. T 12. T 17. F 22. F3. T 8. T 13. F 18. T 23. T4. T 9. F 14. F 19. T 24. F5. F 10. T 15. F 20. T 25. TTest Bank for Chapter 3Multiple Choice Questions1.The currency in which the parent company prepares its financial statements is thea. base currency.b. functional currency.c. historical currency.d. reporting currency.2. The right and the obligation to trade foreign currency in the future at a set rate is aa. currency swap.b. currency option.c. forward contract.d. money market hedge.3. Which of the following can give rise to foreign currency transaction exposure?a. Selling goods whose prices are contractually denominated in a foreign currency.b. Borrowing funds in a foreign currency.c. Engaging in contracts to trade in foreign currency at a future date.d. Other economic transactions denominated in foreign currencies.e. All of the above.4. In the one-transaction approach:a. The gain or loss is recorded separatelyb. The gain or loss is reflected in the value of the resource acquiredc. Either (a) or (b)d. None of the above5. The two-transaction approach is required in:a. The United Statesb. Australiac. Canadad. All of the abovee. None of the above6. A forward exchange contract is an agreement to:a. Buy a foreign currency in the future at a variable rateb. Sell a foreign currency in the future at a variable ratec. Buy or sell a foreign currency in the future at a set rated. None of the above7. Under the monetary/non-monetary method of foreign currency translation, depreciationexpense is translated at the:a. Current rateb. Weighted average ratec. Historical rated. None of the above8. Under the temporal method, translation gains and losses appear in:a. the stockholders' equity sectionb. the income statement as a normal operating itemc. the income statement as an extraordinary itemd. None of the above9. Under the current rate methoda. all assets and liabilities are translated at the current year's average exchange rate.b. foreign currency translation gains and losses do not affect the income statement.c. all revenues and expenses are translated using the current exchange rate.d. the income statement contains a cumulative translation adjustment amount.10. Under SFAS No. 52, the temporal method of translation is used whena. the local currency is the functional currency.b. the local currency is the reporting currency.c. the parent's currency is the functional currency.d. the parent's currency is the reporting currency.11. Under SFAS No. 52, the current rate method of translation is used whena. the local currency is the functional currency.b. the local currency is the reporting currency.c. the parent's currency is the functional currency.d. the parent's currency is the reporting currency.12. Under SFAS No. 52, a hyperinflationary economy is defined as one that has inflation ofapproximately:a. 100 percent per yearb. 100 percent or more over a three year periodc. 25 percent per yeard. None of the above13. Under SFAS No. 52, the primary currency in which a company conducts its business iscalled the:a. Core currencyb. Functional currencyc. Hard currencyd. Convertible currency14. Under which translation method is the foreign currency translation gain or loss taken tostockholders' equity?a. The current rate methodb. The temporal methodc. The conversion methodd. None of the above15. When a foreign subsidiary's functional currency is its local currency and its financialstatements are prepared in the local currency then SFAS No. 52 requires that:a. The current method be used in translating financial statements.b. The temporal method be used in remeasuring financial statements.c. The temporal method be used in translating financial statements.d. The current method be used in remeasuring financial statements.16. According to SFAS No. 52, a self-sustaining, autonomous foreign subsidiarya. has a low volume of transactions with the parent.b. has sales mainly denominated in the parent's currency.c. has the U.S. dollar as its functional currency.d. obtains financing primarily from the parent.e. should be disclosed as a separate geographic segment.17. According to SFAS No. 52, an integral foreign subsidiarya. has a low volume of transactions with the parent.b. must be 100 percent owned by the parent.c. obtains most of its financing locally.d. depends on the parent for its revenues and expenses.e.has an active local sales market for its products.18.The Indian subsidiary of a U.S. software firm purchased an office building on January 22,2004, for Indian Rupees (IRs.) 10 million when the exchange rate was IRs. 50 = US$1. On December 31, 2004 (the parent’s fiscal year-end), the exchange rate was Irs. 52 = US$1.The average exchange rate for the year 2004 was Irs. 51 = US$1. If the Indian subsidiary’s primary operating environment is considered to be India, under the requirements of SFAS No. 52, at what amount will the office building be included in the consolidated financial statements at December 31, 2004?$200,000$192,308$196,078d.IRs. 10 millione.None of the above.。

《会计学》C试卷参考答案

江西财经大学08－09第二学期期末考试参考答案与评分标准试卷代码：C授课对象：本科课程名称：会计学适用对象：本科一、单项选择题(每小题1分，共10分)1.C2.B3.B4.C5.B6.B7.D8.B9.D 10.B二、多项选择题(每小题1分，共5分)1.ABC2.ACD3.ABC4.ABCD5.ABCD三、判断题(每小题1分，共10分)1.F2.F3.F4.F5.F6.F7.T8.T9.F 10.F四、简答题(每小题5分，共10分)1、（1）资产是企业拥有或控制的、由过去的交易及事项形成的并能够给企业带来未来经济利益的资源，它可分为流动资产与非流动资产。

（1.5分）（2）权益是指经济资源提供者把资产提供给企业使用时，就对企业资产享有一定的要求权，这种要求权在快捷上被称为权益。

权益可分为债权人权益与所有者权益。

（1.5分）（3）资产表明经济资源的占用形态，权益表明经济资源的来源渠道，资产与权益是同一经济资源的两个方面。

它们相互依存，对立统一。

（1分）（4）资产与权益在任何时点、任何场合在金额上始终相等，表现为资产=权益，进一步说，资产=债权人权益+所有者权益，即资产=负债+所有者权益。

（1分）2、（1）经济业务引起会计恒等式变化有四种类型，它们分别会影响会计恒等式的金额方面，但不会破坏会计恒等式的平衡关系。

（1分）（2）经济业务引起会计恒等式两边同金额增加，会计恒等式保持平衡。

例如接受投资者投资。

（1分）（3）经济业务引起会计恒等式两边同金额减少，会计恒等式保持平衡。

例如偿还到期银行借款。

（1分）（4）经济业务引起会计恒等式左边一增一减，会计恒等式保持平衡。

例如用银行存款采购原材料。

（1分）（5）经济业务引起会计恒等式左边一增一减，会计恒等式保持平衡。

例如借新债还旧债。

（1分）五、计算分析题1、第一小题参考答案（5分）：1、存货=1,766万2、应收账款=690,600万3、应付账款=850,200万4、预收账款=88,700万5、预付账款=399,000万2、第二小题参考答案（5分）：3、第三小题参考答案（5分）：六、根据以下经济业务逐笔编制会计分录（每题2分，共50分）1.借：银行存款300万（2分）贷：股本300万2.借：无形资产100万（2分）贷：股本80万资本公积20万3.借：银行存款200万（2分）贷：长期借款200万4、借：在途物资—甲材料52万（2分）—乙材料48万应交税费—应交增值税（进项税额）17万贷：应付账款117万5、借：原材料100万（2分）贷：在途物资—甲材料52万—乙材料48万6、借：在建工程100万（2分）应交税费—应交增值税（进项税额）17万贷：银行存款117万7、借：工程物资21万（2分）贷：银行存款21万8、借：在建工程26万（2分）贷：工程物资21万银行存款5万9、借：固定资产126万（2分）贷：在建工程126万10、借：生产成本——A 100万（2分）——B 120万制造费用16万管理费用4万贷：原材料240万11、借：生产成本——A 12万（2分）——B 15万制造费用1万管理费用2万贷：应付职工薪酬——应付职工工资30万12、借：制造费用70万（2分）管理费用20万销售费用10万贷：累计折旧100万13、借：库存商品—A产品280万（2分）—B产品320万贷：生产成本—A产品280万—B产品320万14、借：银行存款400万（2分）贷：预收账款400万15、借：应收票据117万（2分）贷：主营业务收入100万应交税费——应交增值税（销项税额）17万16、借：主营业务成本60万（2分）贷：库存商品60万17、借：其他应收款11.7万（2分）贷：其他业务收入10万应交税费——应交增值税（销项税额）1.7万18、借：销售费用50万（2分）贷：应付账款50万19、借：财务费用1.5万（2分）贷：应付利息 1.5万20、借：营业税金及附加—消费税4.8万（2分）—教育费附加0.7万贷：应交税费5.5万21、借：应付账款5万（2分）贷：营业外收入5万22、借：本年利润6151.5万（1分）贷：主营业务成本4,200万营业税金及附加260万其他业务支出110万管理费用350万财务费用50万销售费用240万营业外支出78万、所得税费用863.5万借：主营业务收入8,400万（1分）其他业务收入300万营业外收入42万贷：本年利润8,742万23、借：本年利润2,590.5万（2分）贷：利润分配——未分配利润2,590.5万24、借：利润分配——提取法定盈余公积259万（2分）——提取任意盈余公积700万——应付现金股利220万贷：盈余公积——法定盈余公积259万——任意盈余公积700万应付股利220万元25、借：利润分配——未分配利润1,179万贷：利润分配——提取法定盈余公积259万（2分）——提取任意盈余公积700万——应付现金股利220万。

江西财经大学2016年高级财务会计二专注会C卷(###最新完整版)

江西财经大学15－16第一学期期末考试试卷试卷代码：授课课时：64 考试用时：110分钟课程名称：高级财务会计适用对象：注会二专试卷命题人试卷审核人一、单项选择（本大题共5小题，每小题2分，共10分，在每小题列出的备选项中只有一个是符合题目要求的，请将其代码填写在题后的括号内。

错选、多选或未选均无分）。

1、销售代理处所需要的经营现金一般由总公司提供，以（）的方式进行核算和管理。

A.周转金B.限额备用金C.外埠存款D.划拨2、下列不属于企业合并范围的是（）A、吸收合并B、联营C、控股合并D、创立合并3、交易性金融资产，采用公允价值确定日的即期汇率折算，折算后的记账本位币金额与原记账本位币金额的差额，计入（）。

A.营业外支出B.资本公积C.财务费用D.公允价值变动损益4、中期财务报告的中期是指（）。

A. 会计年度的前6个月B.3个月C.9个月D. 短于一个会计年度的会计期间5、实质上转移了与资产所有权有关的全部风险和报酬的租赁是（）A．经营租赁 B. 有担保租赁C．融资租赁 D. 售后租回【第 1页共 4 页】二、多项选择（本大题共5小题，每小题2分，共10分，在每小题列出的备选项中至少有两个是符合题目要求的，请将其代码填写在题后的括号内。

错选、多选、少选或未选均无分。

）1、合伙企业设置的特有账户有（）。

A.合伙人资本B.合伙人提款C.本年利润D.管理费用2、企业合并采用的会计方法通常有（）A、购买法B、权益集合法C、成本法D、变异权益法3、在外币报表折算时，应按照资产负债表日即期汇率折算的项目有（）。

A.货币资金B.交易性金融资产C.长期借款D.盈余公积4、在确定业务分部时，应考虑以下主要因素（）A.产品或劳务的性质B.生产过程的性质C.经济和政治情况的相似性D.销售商品或提供劳务所使用的方法5、合并财务报表主要包括（）A．合并资产负债表 B.合并利润表C.合并现金流量表D.合并所有者权益变动表三、正误判断（判断以下论述的正误，正确的在答题相应位置划“T”或者“√”，错误的划“F”或者“×”。

江西财经大学高级财务会计国际学院题库chapter

A d v a n c e d A c c o u n t i n g,11e(B e a m s/A n t h o n y/B e t t i n g h a u s/S m i t h) Chapter 1 Business CombinationsMultiple Choice Questions1) Which of the following is not a reason for a company to expand through a combination, rather than by building new facilities?A) A combination might provide cost advantages.B) A combination might provide fewer operating delays.C) A combination might provide easier access to intangible assets.D) A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.Answer: DObjective: LO1Difficulty: Easy2) A business merger differs from a business consolidation becauseA) a merger dissolves all but one of the prior entities, but a consolidation dissolves all of the prior entities.B) a consolidation dissolves all but one of the prior entities, but a merger dissolves all of the prior entities.C) a merger is created when two entities join, but a consolidation is created when more than two entities join.D) a consolidation is created when two entities join, but a merger is created when more than two entities join.Answer: AObjective: LO2Difficulty: Easy3) Following the accounting concept of a business combination, a business combination occurs when a company acquires an equity interest in another entity and hasA) at least 20% ownership in the entity.B) more than 50% ownership in the entity.C) 100% ownership in the entity.D) control over the entity, irrespective of the percentage owned.Answer: DObjective: LO2Difficulty: Easy4) Historically, much of the controversy concerning accounting requirements for business combinations involved the ________ method.A) purchaseB) pooling of interestsC) equityD) acquisitionAnswer: BObjective: LO2Difficulty: Easy5) Pitch Co. paid $50,000 in fees to its accountants and lawyers in acquiring Slope Company. Pitch will treat the $50,000 asA) an expense for the current year.B) a prior period adjustment to retained earnings.C) additional cost to investment of Slope on the consolidated balance sheet.D) a reduction in additional paid-in capital.Answer: AObjective: LO3, 4Difficulty: Moderate6) Picasso Co. issued 5,000 shares of its $1 par common stock, valued at $100,000, to acquire shares of Seurat Company in an all-stock transaction. Picasso paid the investment bankers $35,000 and will treat the investment banker fee asA) an expense for the current year.B) a prior period adjustment to Retained Earnings.C) additional goodwill on the consolidated balance sheet.D) a reduction to additional paid-in capital.Answer: DObjective: LO3Difficulty: Moderate7) Durer Inc. acquired Sea Corporation in a business combination and Sea Corp went out of existence. Sea Corp developed a patent listed as an asset on Sea Corp's books at the patent office filing cost. In recording the combination,A) fair value is not assigned to the patent because the research and development costs have been expensed by Sea Corp.B) Sea Corp's prior expenses to develop the patent are recorded as an asset by Durer at purchase.C) the patent is recorded as an asset at fair market value.D) the patent's market value increases goodwill.Answer: CObjective: LO4Difficulty: Moderate8) In a business combination, which of the following will occur?A) All identifiable assets and liabilities are recorded at fair value at the date of acquisition.B) All identifiable assets and liabilities are recorded at book value at the date of acquisition.C) Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired.D) None of the above is correct.Answer: AObjective: LO3Difficulty: Moderate9) According to FASB Statement 141R, which one of the following items may not be accounted for as an intangible asset apart from goodwill?A) A production backlogB) A talented employee workforceC) Noncontractual customer relationshipsD) Employment contractsAnswer: BObjective: LO4Difficulty: Easy10) Under the provisions of FASB Statement No. 141R, in a business combination, when the fair value of identifiable net assets acquired exceeds the investment cost, which of the following statements is correct?A) A gain from a bargain purchase is recognized for the amount that the fair value of the identifiable net assets acquired exceeds the acquisition price.B) The difference is allocated first to reduce proportionately (according to market value)non-current assets, then to non-monetary current assets, and any negative remainder is classified as a deferred credit.C) The difference is allocated first to reduce proportionately (according to market value)non-current assets, and any negative remainder is classified as an extraordinary gain.D) The difference is allocated first to reduce proportionately (according to market value)non-current, depreciable assets to zero, and any negative remainder is classified as a deferred credit.Answer: AObjective: LO4Difficulty: Easy11) With respect to goodwill, an impairmentA) will be amortized over the remaining useful life.B) is a two-step process which analyzes each business reporting unit of the entity.C) is a one-step process considering the entire firm.D) occurs when asset values are adjusted to fair value in a purchase.Answer: BObjective: LO4Difficulty: EasyUse the following information to answer the question(s) below.Polka Corporation exchanges 100,000 shares of newly issued $1 par value common stock with a fair market value of $20 per share for all of the outstanding $5 par value common stock of Spot Inc. and Spot is then dissolved. Polka paid the following costs and expenses related to the business combination:Costs of special shareholders' meetingto vote on the merger $12,000Registering and issuing securities 10,000Accounting and legal fees 18,000Salaries of Polka's employees assignedto the implementation of the merger 27,000Cost of closing duplicate facilities 13,00012) In the business combination of Polka and SpotA) the costs of registering and issuing the securities are included as part of the purchase price for Spot.B) the salaries of Polka's employees assigned to the merger are treated as expenses.C) all of the costs except those of registering and issuing the securities are included in the purchase price of Spot.D) only the accounting and legal fees are included in the purchase price of Spot.Answer: BObjective: LO3Difficulty: Moderate13) In the business combination of Polka and Spot,A) all of the items listed above are treated as expenses.B) all of the items listed above except the cost of registering and issuing the securities are included in the purchase priceC) the costs of registering and issuing the securities are deducted from the fair market value of the common stock used to acquire Spot.D) only the costs of closing duplicate facilities, the salaries of Polka's employees assigned to the merger, and the costs of the shareholders' meeting would be treated as expenses.Answer: CObjective: LO3Difficulty: Moderate14) Which of the following methods does the FASB consider the best indicator of fair values in the evaluation of goodwill impairment?A) Senior executive's estimatesB) Financial analyst forecastsC) Market valueD) The present value of future cash flows discounted at the firm's cost of capitalAnswer: CObjective: LO4Difficulty: Easy15) Pepper Company paid $2,500,000 for the net assets of Salt Corporation and Salt was then dissolved. Salt had no liabilities. The fair values of Salt's assets were $3,750,000. Salt's only non-current assets were land and buildings with book values of $100,000 and $520,000, respectively, and fair values of $180,000 and $730,000, respectively. At what value will the buildings be recorded by Pepper?A) $730,000B) $520,000C) $210,000D) $0Answer: AObjective: LO4Difficulty: Moderate16) According to FASB Statement No. 141, liabilities assumed in an acquisition will be valued at the ________.A) estimated fair valueB) historical book valueC) current replacement costD) present value using market interest ratesAnswer: AObjective: LO3Difficulty: Easy17) In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct?A) Firms are not required to disclose the name of the acquired company.B) Firms are not required to disclose the business purpose for a combination.C) Firms are required to disclose the nature, terms and fair value of consideration transferred in a business combination.D) All of the above are correct.Answer: CObjective: LO4Difficulty: Easy18) Goodwill arising from a business combination isA) charged to Retained Earnings after the acquisition is completed.B) amortized over 40 years or its useful life, whichever is longer.C) amortized over 40 years or its useful life, whichever is shorter.D) never amortized.Answer: DObjective: LO4Difficulty: Easy19) In reference to international accounting for goodwill, U.S. companies have complained that past U.S. accounting rules for goodwill placed them at a disadvantage in competing against foreign companies for merger partners. Why?A) Previous rules required immediate write off of goodwill which resulted in a one-time expense that was not required under international rules.B) Previous rules required amortization of goodwill which resulted in an ongoing expense that was not required under international rules.C) Previous rules did not permit the recording of goodwill, thus resulting in a lower asset base than international counterparts would recognize.D) All of the above are correct.Answer: BObjective: LO4Difficulty: Moderate20) When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company?A) Purchase of the majority of outstanding voting stock of the acquired company.B) Purchase of all assets and liabilities of another company.C) Purchase the assets, but not necessarily the liabilities, of another company previously in bankruptcy.D) All of the above methods result in a company gaining control over another company. Answer: DObjective: LO2Difficulty: ModerateExercises1) Parrot Incorporated purchased the assets and liabilities of Sparrow Company at the close of business on December 31, 2011. Parrot borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly. The fair value and book value of Sparrow's recorded assets and liabilities as of the date of acquisition are listed below. In addition, Sparrow had a patent that had a fair value of $50,000.Book Value Fair ValueCash $120,000 $120,000Inventories 220,000 250,000Other current assets 630,000 600,000Land 270,000 320,000Plant assets-net 4,650,000 4,600,000Total Assets $5,890,000Accounts payableNotes payable 2,100,000 2,100,000Capital stock, $5 par 700,000Additional paid-in capital 1,400,000Retained Earnings 490,000Total Liabilities & Equities $5,890,000Required:1. Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow survives as a separate legal entity.2. Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Parrot for the acquisition of Sparrow (Sparrow survives as a separate legal entity):Investment in Sparrow 2,640,000Cash 640,000Notes Payable 2,000,0002. General journal entry recorded by Parrot for the acquisition of Sparrow (Sparrow dissolves as a separate legal entity):Cash 120,000Inventories 250,000Other current assets 600,000Land 320,000Plant assets 4,600,000Patent 50,000Accounts payable 1,200,000Notes payable 2,100,000Cash 640,000Notes Payable 2,000,000Objective: LO4Difficulty: Moderate2) On January 2, 2011 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2011 is as follows:Piron SeanaCash $150,000 $120,000Inventories 320,000 400,000Other current assets 500,000 500,000Land 350,000 250,000Plant assets-net 4,000,000 1,500,000Total Assets $5,320,000 $2,770,000Accounts payableNotes payable 1,300,000 660,000Capital stock, $5 par 2,000,000 500,000Additional paid-in capital 1,000,000 100,000Retained Earnings 20,000 1,210,000Total Liabilities & Equities $5,320,000 $2,770,000Required:1. Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity.2. Prepare Piron's general journal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Piron for the acquisition of Seana (Seana survives as a separate legal entity):Investment in Seana 1,900,000Common stock 500,000Additional paid-in capital 1,400,000Investment expense 20,000Additional paid-in capital 15,000Cash 35,0002. General journal entry recorded by Piron for the acquisition of Seana (Seana dissolves as a separate legal entity):Cash 85,000Inventories 400,000Other current assets 500,000Land 250,000Plant assets 1,500,000Goodwill 90,000Investment expense 20,000Accounts payable 300,000Notes payable 660,000Common stock 500,000Additional paid-in capital 1,385,000Objective: LO4Difficulty: Difficult3) At December 31, 2011, Pandora Incorporated issued 40,000 shares of its $20 par common stock for all the outstanding shares of the Sophocles Company. In addition, Pandora agreed to pay the owners of Sophocles an additional $200,000 if a specific contract achieved the profit levels that were targeted by the owners of Sophocles in their sale agreement. The fair value of this amount, with an agreed likelihood of occurrence and discounted to present value, is $160,000. In addition, Pandora paid $10,000 in stock issue costs, $40,000 in legal fees, and $48,000 to employees who were dedicated to this acquisition for the last three months of the year. Summarized balance sheet and fair value information for Sophocles immediately prior to the acquisition follows.Book Value Fair ValueCash $100,000 $100,000Accounts Receivable 280,000 250,000Inventory 520,000 640,000Buildings and Equipment (net) 750,000 870,000Trademarks and Tradenames 0 500,000Total Assets $1,650,000Accounts Payable $190,000Notes Payable 900,000 900,000Retained Earnings 550,000Total Liabilities and Equity $1,650,000Required:1. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles dissolves as a separate legal entity.2. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $35 at the date of acquisition and Sophocles continues as a separate legal entity.3. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles dissolves as a separate legal entity.4. Prepare Pandora's general journal entry for the acquisition of Sophocles assuming that Pandora's stock was trading at $25 at the date of acquisition and Sophocles survives as a separate legal entity.Answer:1. At $35 per share, assuming Sophocles dissolves as a separate legal entity:Cash $100,000Accounts Receivable 250,000Inventory 640,000Buildings and Equipment 870,000Trademarks/Trade names 500,000Goodwill 290,000Accounts payable 190,000Contingent Liability 160,000Notes payable 900,000Common stock 800,000Additional paid-in capital 600,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.2. At $35 per share, assuming Sophocles continues as a separate legal entity:Investment in Sophocles 1,560,000Contingent Liability 160,000Common stock 800,000Additional paid-in capital 600,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.3. At $25 per share, assuming Sophocles dissolves as a separate legal entity:Cash $100,000Accounts Receivable 250,000Inventory 640,000Buildings and Equipment 870,000Trademarks/Trade names 500,000Accounts payable 190,000Contingent Liability 160,000Notes payable 900,000Gain on bargain purchase 110,000Common stock 800,000Additional paid-in capital 200,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.4. At $25 per share, assuming Sophocles continues as a separate legal entity:Investment in Sophocles 1,160,000Contingent Liability 160,000Common stock 800,000Additional paid-in capital 200,000Investment expense 40,000Additional paid-in capital 10,000Cash 50,000NOTE: Amount paid to employees dedicated to the acquisition would be routinely expensed through company payroll and have no separate impact on the acquisition entry.Objective: LO4Difficulty: Difficult4) On January 2, 2011 Palta Company issued 80,000 new shares of its $5 par value common stock valued at $12 a share for all of Sudina Corporation's outstanding common shares. Palta paid $5,000 for the direct combination costs of the accountants. Palta paid $18,000 to register and issue shares. The fair value and book value of Sudina's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2011 is as follows:Palta SudinaCash $75,000 $60,000Inventories 160,000 200,000Other current assets 200,000 250,000Land 175,000 125,000Plant assets-net 1,500,000 750,000Total Assets $2,110,000 $1,385,00Accounts payableNotes payable 700,000 330,000Capital stock, $2 par 600,000 250,000Additional paid-in capital 450,000 50,000Retained Earnings 260,000 600,000Total Liabilities & Equity $2,110,000 $1,385,000Required:1. Prepare Palta's general journal entry for the acquisition of Sudina assuming that Sudina survives as a separate legal entity.2. Prepare Palta's general journal entry for the acquisition of Sudina assuming that Sudina will dissolve as a separate legal entity.Answer:1. General journal entry recorded by Palta for the acquisition of Sudina (Sudina survives as a separate legal entity):Investment in Sudina 960,000Common stock 400,000Additional paid-in capital 560,000Investment expense 5,000Additional paid-in capital 18,000Cash 23,0002. General journal entry recorded by Palta for the acquisition of Sudina (Sudina dissolves as a separate legal entity):Cash 37,000Inventories 200,000Other current assets 250,000Land 125,000Plant assets 750,000Goodwill 60,000Investment expense 5,000Accounts payable 155,000Notes payable 330,000Common stock 400,000Additional paid-in capital 542,000Objective: LO4Difficulty: Moderate5) Saveed Corporation purchased the net assets of Penny Inc. on January 2, 2011 for $1,690,000 cash and also paid $15,000 in direct acquisition costs. Penny dissolved as of the date of the acquisition. Penny's balance sheet on January 2, 2011 was as follows:Accounts receivable-net $190,000 Current liabilities $235,000Inventory 480,000 Long term debt 650,000Land 10,000 Common stock ($1 par) 25,000Building-net 630,000 Paid-in capital 150,000Equipment-net 240,000 Retained earnings 590,000Total assets $1,650,000 Total liab. & equity $1,650,000values of $640,000, $140,000 and $230,000, respectively. Penny has customer contracts valued at $20,000.Required:Prepare Saveed's general journal entry for the cash purchase of Penny's net assets. Answer: General journal entry for the purchase of Penny's net assets:Accounts receivable 190,000Inventory 640,000Land 140,000Building 630,000Equipment 230,000Customer contracts 20,000Goodwill 725,000Investment expense 15,000Current liabilities 235,000Long-term debt 650,000Cash 1,705,000Objective: LO4Difficulty: Moderate6) Bigga Corporation purchased the net assets of Petit, Inc. on January 2, 2011 for $380,000 cash and also paid $15,000 in direct acquisition costs. Petit, Inc. was dissolved on the date of the acquisition. Petit's balance sheet on January 2, 2011 was as follows:Accounts receivable-net $90,000 Current liabilities $75,000Inventory 220,000 Long term debt 80,000Land 30,000 Common stock ($1 par) 10,000Building-net 20,000 Addtl. paid-in capital 215,000 Equipment-net 40,000 Retained earnings 20,000Total assets $400,000 Total liab. & equity $400,000values of $260,000, $35,000 and $35,000, respectively. Petit has patent rights with a fair value of $20,000.Required:Prepare Bigga's general journal entry for the cash purchase of Petit's net assets.Answer: General journal entry for the purchase of Petit's net assets:Accounts receivable 90,000Inventory 260,000Land 35,000Building 20,000Equipment 35,000Patent 20,000Goodwill 75,000Investment expense 15,000Current liabilities 75,000Long-term debt 80,000Cash 395,000Objective: LO4Difficulty: Moderate7) The balance sheets of Palisade Company and Salisbury Corporation were as follows onexchange for all of Salisbury's shares, and Salisbury was dissolved. Palisade paid $20,000 to register and issue the new common shares. It cost Palisade $50,000 in direct combination costs. Book values equal market values except that Salisbury's land is worth $250,000.Required:Prepare a Palisade balance sheet after the business combination on January 1, 2011. Answer: The balance sheet for Palisade Corporation subsequent to its acquisition of Salisburyand $120,000, less the cash paid out during the acquisition process of $70,000. Retained Earnings of the parent is reduced for the Investment Expense incurred in the process of $50,000.Objective: LO4Difficulty: ModerateSpinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below.Cash $200,000Accounts Receivable 220,000Copyrights (purchased) 400,000Goodwill 120,000Liabilities (180,000)Net assets $760,000Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $100,000.Required:Calculate the amount of goodwill that will be recorded on Pilate's balance sheet as of the date of acquisition.Answer: Goodwill is calculated as follows:Purchase price $900,000Fair value of net assets:Cash $200,000Accounts Receivable 185,000Copyrights 400,000Patents 100,000Liabilities (180,000)Total (705,000)Purchase price in excess offair value of net assets: $195,000Objective: LO4Difficulty: ModerateSpinning Company, and dissolved Spinning Company. The carrying values for Spinning Company's assets and liabilities are recorded below.Cash $200,000Accounts Receivable 220,000Copyrights (purchased) 400,000Goodwill 120,000Liabilities (180,000)Net assets $760,000Receivable. Pilates entered into the acquisition because Spinning had Copyrights that Pilates wished to own, and also unrecorded patents with a fair value of $100,000.Required:Calculate the amount of goodwill that will be recorded on Pilate's balance sheet as of the date of acquisition. Then record the journal entry Pilates would record on their books to record the acquisition.Answer: Goodwill is calculated as follows:Purchase price $700,000Fair value of net assets:Cash $200,000Accounts Receivable 185,000Copyrights 400,000Patents 100,000Liabilities (180,000)Total (705,000)Fair value of net assets inexcess of Purchase price: $(5,000)Because Pilates paid less than the fair value of the net assets, they are considered to have made a bargain purchase, and would thus record a Gain on Bargain Purchase in the amount of $5,000 at the time of acquisition.The following journal entry would be prepared:Cash 200,000Accounts receivable 185,000Copyrights 400,000Patents 100,000Liabilities 180,000Bargain purchase gain 5,000Cash 700,000Objective: LO4Difficulty: Moderate10) Pali Corporation exchanges 200,000 shares of newly issued $10 par value common stock with a fair market value of $40 per share for all the outstanding $5 par value common stock of Shingle Incorporated, which continues on as a legal entity. Fair value approximated book value for all assets and liabilities of Shingle. Pali paid the following costs and expenses related to the business combination:Registering and issuing securities 19,000Accounting and legal fees 150,000Salaries of Pali's employees whosetime was dedicated to the merger 86,000Cost of closing duplicate facilities 223,000Required: Prepare the journal entries relating to the above acquisition and payments incurred by Pali, assuming all costs were paid in cash.Answer:Investment in Shingle 8,000,000Common Stock 2,000,000Additional Paid in Capital 6,000,000Additional Paid in Capital 19,000Cash 19,000Investment Expense (fees) 150,000Cash 150,000Salary expense 86,000Cash 86,000Plant closure expense 223,000Cash 223,000Objective: LO3Difficulty: Moderate11) Samantha's Sporting Goods had net assets consisting of the following:Book Value Fair ValueCash 150,000 150,000Inventory 820,000 960,000Building and Fixtures 330,000 310,000Liabilities (90,000) (88,000)Pedic Incorporated purchased Samantha's Sporting Goods, and immediately dissolved Samantha's as a separate legal entity.Requirement 1: If Samantha's was purchased for $1,000,000 cash, prepare the entry recorded by Pedic.Requirement 2: If Samantha's was purchased for $1,500,000 cash, prepare the entry recorded by Pedic.Answer:Requirement 1:Cash* 150,000Inventory 960,000Building and Fixtures 310,000Liabilities 88,000Gain on Bargain Purchase 332,000Cash* 1,000,000*Cash entries may be recorded net on single line entry.Requirement 2:Cash* 150,000Inventory 960,000Building and Fixtures 310,000Goodwill 168,000Liabilities 88,000Cash* 1,500,000*Cash entries may be recorded net on single line entry.Objective: LO4Difficulty: Moderate。

江西财经大学高级财务会计国际学院题库chater

Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith)Chapter 14 Foreign Currency Financial StatementsMultiple Choice Questions1) A U.S. firm has a Belgian subsidiary that uses the British pound as its functional currency. According to GAAP, the U.S. dollar from Belgian unit's point of view will beA) its only foreign currency.B) its local currency.C) its current rate method currency.D) its reporting currency.Answer: DObjective: LO1Difficulty: Easy2) Selvey Inc. is a wholly-owned subsidiary of Parsfield Incorporated, a U.S. firm. The country where Selvey operates is determined to have a highly inflationary economy according to GAAP definitions. Therefore, for purposes of preparing consolidated financial statements, the functional currency isA) its reporting currency.B) its current rate method currency.C) the US dollar.D) its local currency.Answer: CExplanation: C) Selvey must use the functional currency of the reporting entity.Objective: LO3Difficulty: Easy3) All of the following factors would be used to define a foreign entity's functional currency, exceptA) high volume of intercompany transactions.B) expenses for foreign entity primarily driven by local factors.C) financing for foreign entity denominated in local currency.D) foreign entity's status as a local tax haven for transfer pricing purposes.Answer: DObjective: LO1Difficulty: Easy4) The primary goal behind consolidating financial statements of a controlled subsidiary isA) assuring that the subsidiary financial statements are the same under the temporal method or the current rate method.B) assuring that the individual nature of the subsidiary entity is not lost in the consolidation.C) representing the conversion of statements at the historical exchange rate.D) representing the company's underlying economic condition.Answer: DObjective: LO2Difficulty: Easy5) Pelmer has a foreign subsidiary, Sapp Corporation of Germany, whose functional currency is the euro. Sapp's books are maintained in euros. On December 31, 2011, Sapp has an account receivable denominated in British pounds. Which one of the following statements is true?A) Because all accounts of the subsidiary are translated into U.S. dollars at the current rate, the Account Receivable is not adjusted on the subsidiary's books before translation.B) The Account Receivable is remeasured into the functional currency, thus eliminating the need for translation.C) The Account Receivable is first adjusted to reflect the current exchange rate in euros and then translated at the current exchange rate into dollars.D) The Account Receivable is adjusted to euros at the current exchange rate, and any resulting gain or loss is included as a translation adjustment in the stockholders' equity section of the subsidiary's separate balance sheet.Answer: CObjective: LO2Difficulty: Moderate6) Paskin Corporation's wholly-owned Canadian subsidiary has a Canadian dollar functional currency. In translating the subsidiary's account balances into U.S. dollars for reporting purposes, which one of the following accounts would be translated at historical exchange rates?A) Accounts ReceivableB) Notes PayableC) Capital StockD) Retained EarningsAnswer: CObjective: LO2Difficulty: Easy7) A foreign entity is a subsidiary of a U.S. parent company and has always used the current rate method to translate its foreign financial statements on behalf of its parent company. Which one of the following statements is false?A) The U.S. dollar is the functional currency of this company.B) Changes in exchange rates between the subsidiary's country and the parent's country are not expected to affect the foreign entity's cash flows.C) Translation adjustments are shown in stockholders' equity as increases or decreases in other comprehensive income.D) Translation adjustments are not shown on the income statement.Answer: AObjective: LO2Difficulty: Easy8) Assume the functional currency of a foreign entity is the U.S. dollar, but the books are kept in euros. The objective of remeasurement of a foreign entity's accounts is toA) produce the same results as if the foreign entity's books were maintained in the currency of the largest customer.B) produce the same results as if the foreign entity's books were maintained solely in the local currency.C) produce the same results as if the foreign entity's books were maintained solely in the U.S. dollar.D) produce the results reflective of the foreign entity's economics in the local currency.Answer: CObjective: LO2Difficulty: Easy9) Which of the following assets and/or liabilities are considered monetary?A) Intangible Assets and Plant, Property, and EquipmentB) Bonds Payable and Common StockC) Cash and Accounts PayableD) Notes Receivable and Inventories carried at costAnswer: CObjective: LO2Difficulty: Easy10) Which of the following statements about the Current Rate method is false?A) Translation involves restating the functional currency amounts into the reporting currency.B) All assets and liabilities are translated at the current rate.C) If the subsidiary maintains their books in their functional currency, the current rate method is used.D) The effect of exchange rate changes are reported on the income statement as a foreign exchange gain or loss. Answer: DObjective: LO2Difficulty: Easy11) Accounts representing an allowance for uncollectible accounts are converted into U.S. dollars atA) historical rates when the U.S. dollar is the functional currency.B) current rates only when the U.S. dollar is the functional currency.C) historical rates regardless of the functional currency.D) current rates regardless of the functional currency.Answer: DObjective: LO2Difficulty: Easy12) Palk Corporation has a foreign subsidiary located in a country experiencing high rates of inflation. Information concerning this country's inflation rate experience is given below.Change Annual rateDate Index in index of InflationJanuary 1, 2009 90January 1, 2010 120 30 30/100 = 30.00%January 1, 2011 150 30 30/130 = 23.08%January 1, 2012 210 60 60/160 = 37.50%The inflation rate that is used in determining if the subsidiary is operating in a highly inflationary economy isA) 37.50%.B) 90.58%.C) 133.33%.D) 350.00%.Answer: CExplanation: C) [(210 - 90)/90] × 100% = 133%Objective: LO3Difficulty: Moderate13) At the time of a business acquisition,A) identifiable assets and liabilities are allocated the portion of the translation or remeasurement adjustment that existed on the date of acquisition.B) a foreign entity's assets and liabilities are translated into U.S. dollars using the current exchange rate in effect on that date.C) the difference between investment fair value and translated net assets acquired is treated as a remeasurement gain or loss on the income statement.D) the difference between investment fair value and translated net assets acquired is recorded as a cumulative translation adjustment on the balance sheet.Answer: BObjective: LO4Difficulty: Easy14) When translating foreign subsidiary income statements using the current rate method, why are some accounts translated at an average rate?A) This approach improves matching.B) This approach accentuates the conservatism principle.C) This approach smoothes out highly volatile exchange rate fluctuations.D) This approach approximates the effect of transactions which occur continuously during the period.Answer: DObjective: LO5Difficulty: Easy15) The following assets of Poole Corporation's Romanian subsidiary have been converted into U.S. dollars at the following exchange rates:Current HistoricalRates RatesAccounts receivable $850,000 $875,000Trademark 600,000 575,000Property plant and equipment 1,200,000 900,000Totals $2,650,000 $2,350,000assets should be reported in the consolidated financial statements of Poole Corporation and Subsidiary in the total amount ofA) $2,325,000.B) $2,350,000.C) $2,375,000.D) $2,650,000.Answer: AExplanation: A) A/R $850,000 + Trademark $575,000 + Plant $900,000Objective: LO5Difficulty: Moderate16) Which of the following foreign subsidiary accounts will have the same value on consolidated financial statements, regardless of whether the statements are remeasured or translated?A) TrademarkB) Deferred IncomeC) Accounts ReceivableD) GoodwillAnswer: CObjective: LO2Difficulty: Easy17) Exchange gains or losses from remeasurement appearA) in the continuing operations section of the consolidated income statement.B) as an extraordinary item on the consolidated income statement.C) as other comprehensive income typically reported in a statement of stockholders' equity.D) as an adjustment to the beginning balance of retained earnings on the consolidated Statement of retained earnings. Answer: AObjective: LO6Difficulty: Easy18) A U.S. parent corporation loans funds to a foreign subsidiary to be used to purchase equipment. The loan is denominated in U.S. dollars and the functional currency of the subsidiary is the euro. This intercompany transaction is a foreign currency transaction ofA) neither the subsidiary nor the parent, as it is eliminated as part of the consolidation procedure.B) the subsidiary but not the parent.C) both the subsidiary and the parent.D) the parent but not the subsidiary.Answer: BObjective: LO7Difficulty: Moderate19) A foreign subsidiary's accounts receivable balance should be translated for the consolidated financial statements atA) the appropriate historical rate.B) the prior year's forecast rate.C) the future rate for the next year.D) the spot rate at year-end.Answer: DObjective: LO8Difficulty: Easy20) If a U.S. company wants to hedge a prospective loss on its investment in a foreign entity that may result from a foreign currency fluctuation, the U.S. company shouldA) purchase a forward to swap currency of the foreign entity's local country for U.S. currency.B) purchase a call option to buy currency of the foreign entity's local country.C) issue a loan in the foreign entity's local country.D) borrow money in the foreign entity's local country.Answer: DObjective: LO9Difficulty: EasyExercises1) For each of the 12 accounts listed in the table below, select the correct exchange rate to use when either remeasuring or translating a foreign subsidiary for its U.S. parent company.CodesC = Current exchange rateH = Historical exchange rateA = Average exchange rateU.S. dollar is The foreignthe functional currency is thecurrency functional currency1. Accounts receivable ________ ________2. Marketable debt securitiescarried at cost ________ ________3. Inventories carried at cost ________ ________4. Deferred income ________ ________5. Goodwill ________ ________6. Other paid-in capital ________ ________7. Depreciation expense ________ ________8. Refundable deposits ________ ________9. Common stock ________ ________10. Accumulated depreciation onbuildings ________ ________11. Deferred income tax liabilities ________ ________12. Accounts payable ________ ________Answer: U.S. dollar is The foreignthe functional currency is thecurrency functional currency1. Accounts receivable C C2. Marketable debt securitiescarried at cost H C3. Inventories carried at cost H C4. Deferred income H C5. Goodwill H C6. Other paid-in capital H H7. Depreciation expense H C8. Refundable deposits C C9. Common stock H H10. Accumulated depreciation onbuildings H C11. Deferred income tax liabilities C C12. Accounts payable C C Objective: LO2Difficulty: Moderate2) On January 1, 2012, Planet Corporation, a U.S. company, acquired 100% of Star Corporation of Bulgaria, paying an excess of 90,000 Bulgarian lev over the book value of Star's net assets. The excess was allocated to undervalued equipment with a three-year remaining useful life. Star's functional currency is the Bulgarian lev. Star's books are maintained in the functional currency. Exchange rates for Bulgarian lev for 2012 are:January 1, 2012 $.77Average rate for 2012 .75December 31, 2012 .73Required:1. Determine the depreciation expense stated in U.S. dollars on the excess allocated to equipment for 2012.2. Determine the unamortized excess allocated to equipment on December 31, 2012 in U.S. dollars.3. If Star's functional currency was the U.S. dollar, what would be the depreciation expense on the excess allocated to the equipment for 2012?Answer:Requirement 1Depreciation expense in 201290,000 lev/3 years × $.75/lev = $22,500 depreciation expenseRequirement 2Unamortized excess at December 31, 201290,000 lev × 2/3 × $.73/lev = $43,800 unamortized excess on equipmentRequirement 3Remeasured depreciation expense90,000 lev × $.77/lev = $69,300 excess$69,300/3 years = $23,100 depreciation expenseObjective: LO5Difficulty: Moderate3) Pan Corporation, a U.S. company, formed a British subsidiary on January 1, 2012 by investing 450,000 British pounds (￡) in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Skillet Corporation, purchased real property on April 1, 2012 at a cost of ￡500,000, with ￡100,000 allocated to land and ￡400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The British pound is Skillet's functional currency and its reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were:January 01, 2012 =1￡=$1.60April 01, 2012 =1￡=$1.61December 31, 2012 =1￡=$1.682012 average rate =1￡=$1.66Skillet's adjusted trial balance is presented below for the year ended December 31, 2012.In PoundsDebits:Cash ￡220,000Accounts receivable 52,000Inventory 59,000Building 400,000Land 100,000Depreciation expense 7,500Other expenses 110,000Cost of goods sold 220,000Total debits ￡1,168,500CreditsAccumulated depreciation ￡7,500Accounts payable 111,000Common stock 450,000Retained earnings 0Equity adjustment 0Sales revenue 600,000Total credits ￡1,168,500Required: Prepare Skillet's:1. Translation working papers;2. Translated income statement; and3. Translated balance sheet.Requirement 1Skillet CorporationTranslation Working PapersDebitsCash 220,000 × $1.68 =$369,600 Accounts receivable 52,000 × $1.68 =87,360 Inventory 59,000 × $1.68 =99,120 Building 400,000 × $1.68 =672,000 Land 100,000 × $1.68 =168,000 Depreciation expense 7,500 × $1.66 =12,450 Other expenses 110,000 × $1.66 =182,600 Cost of goods sold 220,000 × $1.66 =365,200_________ Total debits $1,956,330 CreditsAccumulated depreciation 7,500 × $1.68 =$12,600 Accounts payable 111,000 × $1.68 =186,480 Common stock 450,000 × $1.60 =720,000 Sales revenue 600,000 × $1.66 =996,000 Retained earnings 0 Total credits $1,915,080 Credit differential $41,250 Requirement 2Skillet CorporationTranslated Income StatementFor the Year Ended December 31, 2012Sales revenue $996,000 Expenses:Cost of goods sold (365,200) Depreciation expense (12,450) Other expenses (182,600)________ Net income $435,750Skillet CorporationTranslated Balance SheetDecember 31, 2012Cash $369,600 Accounts receivable 87,360 Inventory 99,120 Building-net 659,400 Land 168,000 Total assets $1,383,480 Accounts payableCommon stock 720,000 Retained earnings 435,750 Accumulated other comprehensive income 41,250 Total liabilities & equities $1,383,480 Objective: LO5Difficulty: Moderate4) Note to Instructor: This exam item is a continuation of Exercise 3 and proceeds forward with Skillet's second year of operations.Skillet Corporation, a British subsidiary of Pan Corporation (a U.S. company) was formed by Pan on January 1, 2012 in exchange for all of the subsidiary's common stock. Skillet has now ended its second year of operations on December 31, 2013. Relevant exchange rates are:January 01, 2013 =1￡=$1.60December 31, 2013 =1￡=$1.752013 average rate =1￡=$1.73Skillet's adjusted trial balance is presented below for the calendar year 2013. The amount of equity adjustment carried over from 2012 is a credit balance of $41,250 (in dollars).In PoundsDebits:Cash ￡75,000Accounts receivable 362,000Inventory 41,000Building 400,000Land 100,000Depreciation expense 10,000Other expenses 133,000Cost of goods sold 380,000Total debits ￡1,501,000CreditsAccumulated depreciation ￡17,500Accounts payable 154,750Common stock 450,000Retained earnings 262,500Sales revenue 616,250Total credits ￡1,501,000Required: For Skillet's second year of operations, prepare the:1. Translation working papers;2. Translated income statement; and3. Translated balance sheet.Requirement 1Skillet CorporationTranslation Working PapersDebitsCash 75,000 × $1.75 =$131,250 Accounts receivable 362,000 × $1.75 =633,500 Inventory 41,000 × $1.75 =71,750 Building 400,000 × $1.75 =700,000 Land 100,000 × $1.75 =175,000 Depreciation expense 10,000 × $1.73 =17,300 Other expenses 133,000 × $1.73 =230,090 Cost of goods sold 380,000 × $1.73 =657,400 Total debits $2,616,290 CreditsAccumulated depreciation 17,500 × $1.75 =$30,625 Accounts payable 154,750 × $1.75 =270,812 Common stock 450,000 × $1.60 =720,000 Sales revenue 616,250 × $1.73 =1,066,113 Retained earnings 262,500 435,750 Accumulated other comprehensive income 41,250Total credits $2,564,550 Credit differential $51,740 Requirement 2Skillet CorporationTranslated Income Statementfor the year ended December 31, 2013Sales revenue $1,066,113 Expenses:Cost of goods sold (657,400) Depreciation expense (17,300) Other expenses (230,090) Net income $161,323 Retained earnings, January 1, 2013 435,750 Retained earnings, December 31, 2013 $597,073Skillet CorporationTranslated Balance SheetDecember 31, 2013Cash $131,250 Accounts receivable 633,500 Inventory 71,750 Building-net 669,375 Land 175,000 Total assets $1,680,875 Accounts payableCommon stock 720,000 Retained earnings 597,073 Accum. other comprehensive income ($41,250 + $51,740) 92,990 Total liabilities & equities $1,680,875 Objective: LO5Difficulty: Moderate5) Note to Instructor: This exam item is similar to Exercise 3 except that the exchange rates have been changed and the temporal method is used instead of the current rate method.The Polka Corporation, a U.S. corporation, formed a British subsidiary on January 1, 2011 by investing 550,000 British pounds (￡) in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Stripe Corporation, purchased real property on April 1, 2011 at a cost of ￡500,000, with ￡100,000 allocated to land and ￡400,000 allocated to the building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The U.S. dollar is Stripe's functional currency, but it keeps its records in pounds. The British economy does not experience high rates of inflation. Exchange rates for the pound on various dates are:January 01, 2011 =1￡=$1.60April 01, 2011 =1￡=$1.62December 31, 2011 =1￡=$1.652011 average rate =1￡=$1.64Stripe's adjusted trial balance is presented below for the year ended December 31, 2011.In PoundsDebits:Cash ￡200,000Accounts receivable 72,000Notes receivable 99,000Building 400,000Land 100,000Depreciation expense 7,500Other expenses 115,000Salary expense 208,000Total debits ￡1,201,500CreditsAccumulated depreciation ￡7,500Accounts payable 100,000Common stock 550,000Retained earnings 0Equity adjustment 0Sales revenue 544,000Total credits ￡1,201,500Required: Prepare Stripe's:1. Remeasurement working papers;2. Remeasured income statement; and3. Remeasured balance sheet.Requirement 1Stripe CorporationRemeasurement Working PapersDebitsCash 200,000 × $1.65 =$330,000 Accounts receivable 72,000 × $1.65 =118,800Notes receivable 99,000 × $1.65 =163,350 Building 400,000 × $1.62 =648,000Land 100,000 × $1.62 =162,000 Depreciation expense 7,500 x $1.62 =12,150Other expenses 115,000 × $1.64 =188,600 Salary expense 208,000 × $1.64 =341,120_________Total debits $1,964,020 CreditsAccumulated depreciation 7,500 × $1.62 =$12,150 Accounts payable 100,000 × $1.65 =165,000 Common stock 550,000 × $1.60 =880,000Sales revenue 544,000 × $1.64 =892,160 Retained earnings 0 0 Total credits $1,949,310 Credit differential $14,710 Requirement 2Stripe CorporationRemeasured Income StatementFor the Year Ended December 31, 2011Sales revenue $892,160 Expenses:Salary expense (341,120) Depreciation expense (12,150) Other expenses (188,600) Income before exchange gains or losses $350,290 Exchange gains 14,710 Net income $365,000 Retained earnings, January 1, 2011 0 Retained earnings, December 31, 2011 $365,000Stripe CorporationRemeasured Balance SheetDecember 31, 2011Cash $330,000 Accounts receivable 118,800 Notes receivable 163,350 Building-net 635,850 Land 162,000 Total assets $1,410,000 Accounts payableCommon stock 880,000 Retained earnings 365,000 Total liabilities & equities $1,410,000 Objective: LO5Difficulty: Moderate6) Note to Instructor: This exam item is a continuation of Exercise 5 and proceeds forward with Stripe's second year of operations.Stripe Corporation, a British subsidiary of Polka Corporation (a U.S. company) was formed by Polka on January 1, 2011 in exchange for all of the subsidiary's common stock. Stripe has now ended its second year of operations on December 31, 2012. Relevant exchange rates are:January 01, 2011 = 1￡= $1.60April 01, 2011 = 1￡= $1.62December 31, 2012 = 1￡= $1.572012 average rate = 1￡= $1.56Stripe's adjusted trial balance is presented below for the calendar year 2012.In PoundsDebits:Cash ￡172,000Accounts receivable 308,000Notes receivable 98,000Building 400,000Land 100,000Depreciation expense 10,000Other expenses 117,000Salary expense 376,000Total debits ￡1,581,000CreditsAccumulated depreciation ￡17,500Accounts payable 200,000Common stock 550,000Retained earnings 213,500Sales revenue 600,000Total credits ￡1,581,000Required: Prepare Stripe's:1. Remeasurement working papers;2. Remeasured income statement; and3. Remeasured balance sheet.Answer:Requirement 1Stripe CorporationRemeasurement Working PapersDebitsCash 172,000 × $1.57 =$270,040 Accounts receivable 308,000 × $1.57 =483,560 Notes receivable 98,000 × $1.57 =153,860 Building 400,000 × $1.62 =648,000Land 100,000 × $1.62 =162,000 Depreciation expense 10,000 × $1.62 =16,200Other expenses 117,000 × $1.56 =182,520 Salary expense 376,000 × $1.56 =586,560_________Total debits $2,502,740 CreditsAccumulated depreciation 17,500 × $1.62 =$28,350 Accounts payable 200,000 × $1.57 =314,000 Common stock 550,000 × $1.60 =880,000Sales revenue 600,000 × $1.56 =936,000 Retained earnings 213,500 365,000Total credits $2,523,350Debit differential $20,610 Requirement 2Stripe CorporationTranslated Income StatementFor the Year Ended December 31, 2012Sales revenue $936,000 Expenses:Salary expense (586,560) Depreciation expense (16,200) Other expenses 182,520) Income before exchange gains or losses $150,720 Exchange loss (20,610) Net income $130,110 Retained earnings, January 1, 2012 365,000 Retained earnings, December 31, 2012 $495,110Requirement 3Stripe CorporationTranslated Balance SheetDecember 31, 2012Cash $270,040 Accounts receivable 483,560 Notes receivable 153,860 Building-net 619,650 Land 162,000 Total assets $1,689,110 Accounts payableCommon stock 880,000 Retained earnings 495,110 Total liabilities & equities $1,689,110 Objective: LO5Difficulty: Moderate7) On January 1, 2011, Pilgrim Corporation, a U.S. firm, acquired ownership of Settlement Corporation, a foreign company, for $168,000, when Settlement's stockholders' equity consisted of 300,000 local currency units (LCU) and retained earnings of 100,000 LCU. At the time of the acquisition, Settlement's assets and liabilities were fairly valued except for a patent that did not have any recorded book value. All excess purchase cost was attributed to the patent, which had an estimated economic life of 10 years at the date of acquisition. The exchange rate for LCUs on January 1, 2011 was $.40. The functional currency for Settlement is LCU. Settlement's books are maintained in LCU.A summary of changes in Settlement's stockholders' equity during 2011 and the exchange rates for LCUs is as follows:LCU Rates DollarsStockholders' equity1/1/11 400,000 $.40H $160,000Net income 100,000 .42A 42,000Dividends 12/1/11 (50,000) .43H (21,500)Equity adjustment 17,500Stockholders' equity _______ ________12/31/11 450,000 .44C $198,000Required: Determine the following:1. Fair value of the patent from Pilgrim's investment in Settlement on January 1, 2011 in U.S. dollars.2. Patent amortization for 2011 in U.S. dollars.3. Unamortized patent at December 31, 2011 in U.S. dollars.4. Equity adjustment from the patent in U.S. dollars.5. Income from Settlement for 2011 in U.S. dollars.6. Investment in Settlement balance at December 31, 2011 in U.S. dollars.Answer:Requirement 1Patent Fair Value:Cost of investment $168,000Book value acquired 400,000 LCU × $.40 =(160,000)Patent in dollars $8,000Patent in LCU = $8,000/$.40 per LCU =20,000Requirement 2Patent amortization for 2011:Patent: 20,000 LCU/10 years = 2,000 LCU per year2,000 LCU per year × $.42 equals amortization of: $840Requirement 3Unamortized patent:Patent (20,000 LCU - 2,000 LCU) × $.44 =$7,920Requirement 4Equity adjustment from patent:Beginning patent (from Req. 1) $8,000Patent amortization (from Req. 2) (840)Subtotal 7,160Ending patent (from Req. 3) 7,920Equity adjustment $760Requirement 5Income from Settlement:Equity in income $42,000Less: Patent amortization (840)Income from Settlement $41,160Requirement 6Investment in Settlement balance at 12/31/11:Cost, January 1, 2011 $168,000Add: Income for 2011 (from Req. 5) 41,160Less: Dividends (21,500)Add: Equity adjustment from patent (from Req. 4) 760Add: Equity adjustment from translation 17,500Investment balance, December 31, 2011 $205,920Check:Book value: $198,000Unamortized patent (from Req. 3) 7,920Investment balanceObjective: LO7Difficulty: Moderate8) Plate Corporation, a US company, acquired ownership of Saucer Corporation of Switzerland on January 1, 2011 for $1,500,000 when Saucer's stockholders' equity in Swiss francs (SF) consisted of 700,000 SF Capital Stock and 300,000 SF Retained Earnings. The exchange rate for Swiss francs was $1.20 on January 1. All excess purchase cost was attributed to a Trademark that did not have a recorded book value. The trademark is to be amortized over 20 years.Saucer's functional currency is Swiss francs and the records are kept in the same currency. A summary of changes in Saucer's stockholders' equity during 2011 and relevant exchange rates are as follows:。

江西财经大学2005-2006年会计学原理期末考试试题C

江西财经大学2005-2006年会计学原理期末考试试题C课程代码： 02004 C 卷课时：64课程名称：会计学原理适用对象：本科一、单项选择题（共 10 小题，每小题1 分，共 10 分）1、会计核算主要是通过( )来进行的。

A、数量指标B、价值量指标C、实物量指标D、劳动量指标2、每一项经济业务的发生，都会影响( )项目发生增减变化。

A、一个B、两个C、两个或两个以上D、全部3、下列账户中不属于调整账户的是( )A、“坏账准备”账户B、“累计折旧”账户C、“利润分配”账户D、“应收账款”账户4、下列明细账中，可以采用多栏式账页格式的是( )A、生产成本明细账B、其他应付款明细账C、其他应收款明细账D、应收账款明细账5、财产物资的盘存制度一般有( )和( )两种。

A、实地盘存制核对账目法B、实地盘存制永续盘存制C、实地盘点法技术推算盘点法D、实地盘点法账面盘存法6、资产负债表中，“货币资金”项目应根据( )填列。

A、“现金”和“银行存款”账户的期末借方余额多少B、“现金”账户借方余额C、“银行存款”账户借方余额D、“现金”、“银行存款”、“其他货币资金”账户期末借方余额7、各种账务处理程序的主要区别在于( )的依据和方法不同。

A、编制会计凭证B、登记现金日记账和银行存款日记账C、编制会计报表D、登记总账8、会计主体限定了会计核算的( )范围。

A、空间B、时间C、时空D、对象9、下列支出中属于资本性支出的有(． )。

A、材料运杂费B、设备购置费C、待摊费用D、存货的保管费10、某企业年初有资产 200 万元，1 月1 日发生下列业务：收回欠款57 万元，存入银行；归还短期借款10 万元；自银行提取现金3 万元备用，则当天结束时，企业资产总额为( )。

A、190 万元B、198 万元C、202 万元D、208 万元二、多项选择题（共 5 小题，每小题2 分，共 10 分）1、会计计量可以采用( )。

1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。

江西财经大学09－10第二学期期末考试试卷试卷代码：02502C 授课课时：32课程名称：国际会计适用对象：本科试卷命题人王宏试卷审核人：__________ⅠMultiple Choice Questions (20 points)1. Among the factors affecting accounting development are the economic and political tiesbetween countries. Which of the following pairs of countries do not have such ties with each other?a. Philippines and the United Statesb. Singapore and the United Kingdomc. Malaysia and Argentinad. Indonesia and the Netherlandse. France and Germany2. The status of the accounting profession is a factor that affects accounting development incountries. In which of the following countries is accounting not regarded favorably as a career choice?a. United Statesb. New Zealandc. Russiad. Australiae. Canada3. The International Federation of Accountants (IFAC) is not involved in:a. harmonizing global auditing practices.b. providing ethical guidelines for auditors on issues such as integrity and objectivity.c. establishing public sector standards applicable to all levels of government.d. maintaining auditor independence in today's complex business environment.e. administering a worldwide uniform examination for auditors.4. The "world class issuer" approach to global accounting harmonization is not very promisingbecause:a. it is opposed by the U.S. Securities and Exchange Commission.b. there are difficulties in establishing and agreeing upon the criteria for inclusion.c. it faces strong opposition by U.S. companies.d. there are practical difficulties in implementation.e. of all of the above.5. Under SFAS No. 52, the current rate method of translation is used whena. the local currency is the functional currency.b. the local currency is the reporting currency.c. the parent's currency is the functional currency.d. the parent's currency is the reporting currency.6. Under SFAS No. 52, a hyperinflationary economy is defined as one that has inflation ofapproximately:a. 100 percent per yearb. 100 percent or more over a three year periodc. 25 percent per yeard. None of the above7. Sandvika Corp. acquired a warehouse at the start of the year 2003 - its first year of operation -for 10 million Norwegian kroner. The warehouse was to be depreciated over 20 years using the straight line method. At the end of 2003, an appraiser indicated that the replacement cost of the warehouse was 12 million Norwegian kroner. For the year 2003, Sandvika's realized and unrealized holding gains respectively related to the warehouse were:a. 100,000 kroner and 1,900,000 kroner.b. 100,000 kroner and 2,000,000 kronerc. 200,000 kroner and 22,000,000 kronerd. 200,000 kroner and 2,000,000 kronere. None of the above.8. Sandvika Corp. acquired a warehouse at the start of the year 2000 - its first year of operation -for 10 million Norwegian kroner. The warehouse was to be depreciated over 20 years using the straight line method. At the end of 2003, an appraiser indicated that the replacement cost of the warehouse was 12 million kroner. For the year 2003, Sandvika's realized and unrealized holding gains respectively related to the warehouse were:a. 100,000 kroner and 1,600,000 kronerb. 200,000 kroner and 1,600,000 kronerc. 100,000 kroner and 2,000,000 kronerd. 400,000 kroner and 2,000,000 kronere. None of the above.9. Companies doing business globally respond to foreign users of their financialstatements in a variety of ways. Which of the following statements is true?a. Most companies opt for limited restatements since they result in limited costs.b. Secondary financial statements are the least expensive of the alternatives available tocompanies.c. The do nothing approach is invariably the most sensible choice.d. Each approach can be appropriate for a company that uses it if the option chosen is a resultof a reasonable cost-benefit analysis by management.e. A convenience translation is almost always chosen by management because of itsconvenience.10. Research evidence reviewed in the chapter showed that financial statements of two companiesmay lack comparability even if they are prepared using the same accounting principles. This suggests that:a. global accounting harmonization efforts serve little purpose.b. ratio analysis should never be used in comparing countries from different countries.c. it is important to factor in the company's domestic business environment in conductingcross-country ratio analysis.d. it is best to use convenience statements in comparing companies from other countries withone's domestic companies.e. All of the above statements are false.ⅡTrue/False Questions (20 points)1. Whether a country's capital market is equity-oriented or debt-oriented has no impact on thefinancial reporting that develops in the country.2. In countries such as Germany, Japan, and Switzerland companies have traditionally turned tothe stock market as their primary source of capital.3. The Organization for Economic Cooperation and Development issues accounting directiveswhich have the full weight of law behind them.4. In international accounting, harmonization is a movement away from total diversity whilestandardization is a movement towards uniformity.5. In the foreign currency context, there is no distinction between the terms conversion andtranslation.6. Using the current exchange rate to translate current assets and liabilities (under thecurrent/non-current method) is based on the false premise that they are similarly affected by exchange rate changes.7. The revised IAS No. 9 requires that research costs be expensed immediately and thatdevelopment costs also be expensed as incurred unless they meet asset recognition criteria.8. The evidence from a number of research studies indicates a consensus that the geographicsegment disclosure provided in corporate annual reports is generally of a very high quality.9. Cost considerations and the need to tap capital providers in several countries sometimes resultsin companies providing country-specific rather than universal secondary statements.10. Research evidence shows that large U.K. and U.S. firms which tend to have more experience indealing with international capital markets are relatively less affected by accounting differences.ⅢCalculation (20 points)1. Important financial data for the British subsidiary of Millette Company (US) for the 2000 fiscal year is shown below:British pound sterling(millions)a) Net sales…………………. 2,056b) Gross profit………………1,203c) Income before taxes (669)d) Net income (481)Assume the following average exchange rates for the year (US dollar per British pound sterling):1. $1.712. $ 1.653. $ 1.694. $ 1.59Using each exchange rate, make a table converting a), b), c) and d) into US dollars. Determine which exchange rate produces the most favorable results in U.S. dollars. (10 points)2. Gator Corporation (U.S.) purchase equipment worth 2 million German marks from Holdstet (Germany) at the beginning of the year. The transaction was denominated in German marks. The exchange rate at that time was US $.65 = 1DM. However, due to a stronger economy, the German mark had strengthened against the U.S. dollar resulting in an exchange rate of US $.70 = 1DM at year end.a) Determine the transaction gain/loss that Gator Corporation will report in its year-end income statement. (5 points)b) Determine the transaction gain/loss Holdstet will report in its year-end income statement.(5 points)Ⅳ Case (20 points)DSM’s (Netherlands) 1998 corporate annual report included important financial data in both the Dutch Guilder (NGL) and the euro (EUR). Excerpts from the company’s ten-year summary figures for the year 1998 are shown below.Income Statementin NGL million in EUR millionNet sales 14018 6361Operating result 1290 586Financial income and expense (156 ) (71)Result from ordinary activities before taxation 1134 515Tax on result from ordinary activities (237) (108)Result of non-consolidated companies 42 19Result from ordinary activities after taxation 939 426 Extraordinary result after taxation (21) (9)Result after taxation 918 417Minority interests’ share in the result (4) (2)Net result 914 415Per ordinary share in NGL:Result from ordinary activities after taxation 27.19 12.34Net result 26.43 11.99Cash flow 57.55 26.12Questionsment on the differences resulting from DSM’s conversion to the euro for the 1998 fiscalyear.2.Referring to your answer above, how will the conversion to the euro affect DSM’s balance sheetfor the year?3.In your opinion, with the introduction of the euro, what is the management at DSM likely to useto measure operating performance (ie., NGL or EUR or both)? Support your answer.Ⅴ Question (20 points)What are the three characteristics of financial reporting were identified as being particularly relevant to ECMs? Explain each of them.。