Quiz on Managing

Quiz I (Chapters 1and 2) Date: Name: ID: Answer the subaffixed Questions: 1. Tower Inc. owns 30% of Yale Co. and applies the equity process. During the exoteric year, Tower bought register absorbing $66,000 and then sold it to Yale for $120,000. At year-end, simply $24,000 of hoard was calm?} conduct held by Yale. What total of inter-audience register emolument must be bplant by Tower? A. $6,480 B. $3,240 C. $10,800 D. $16,200 E. $6,610 2. All of the subaffixed declarations in-reference-to the boarding recital using the equity process are gentleman bar A. The boarding is commemorative at absorb B.Dividends exoteric are reported as retaliate C. Net proceeds of investee increases the boarding recital D. Dividends exoteric bring the boarding recital E. Amortization of honorable compute aggravate absorb brings the boarding recital 3. Following allocating absorb in extravagance of compass compute, which asset or amenforce would not be amortized aggravate a suited conduct? A. Absorb of commodities sold B. Property, insert, & equipment C. Patents D. Goodprocure E. Bonds payable 4. A audience should regularly use the equity process to recital for an boarding if A. it has the force to application suggestive wave aggravate the at-liberty policies of the investee. B. it owns 30% of another audience's hoard. C. it has a forcible portion-out (balance than 50%) of another audience's hoard. D. the boarding was made chiefly to realize a retaliate on extravagance specie. E. it does not possess the force to application suggestive wave aggravate the at-liberty policies of the investee. 5. An upstream sale of register is a sale A. between subsidiaries owned by a despicable committer. B. following a occasion the alienate of commodities scheduled by form to take-place on a certain coming time. C. in which the commodities are physically delighted by boat from a ancillary to its committer. D. ade by the investor to the investee. E. made by the investee to the investor. 6. In a birth where the investor applications suggestive wave aggravate the investee, which of the subaffixed entries is not substantially posted to the compasss of the investor? 1) Debit to the Boarding recital and a Security to the Equity in Investee Proceeds recital. 2) Debit to Specie (for dividends exoteric from the investee) and a Security to Dividend Revenue. 3) Debit to Specie (for dividends exoteric from the investee) and a Security to the Boarding recital. A. Entries 1 and 2 B. Entries 2 and 3 C. Entry 1 simply D. Entry 2 simply E. Entry 3 simply 7. All of the subaffixed declarations in-reference-to the boarding recital using the equity process are gentleman bar A. The boarding is commemorative at absorb B. Dividends exoteric are reported as retaliate C. Net proceeds of investee increases the boarding recital D. Dividends exoteric bring the boarding recital E. Amortization of honorable compute aggravate absorb brings the boarding recital 8. A audience has been using the honorable-compute process to recital for its boarding. The audience now has the force to suggestively guide the investee and the equity process has been deemed misspend. Which of the subaffixed declarations is gentleman? A. A cumulative issue fluctuate in recitaling doctrine must take-place B. A prospective fluctuate in recitaling doctrine must take-place C. A retrospective fluctuate in recitaling doctrine must take-place D. The investor procure not admit coming dividends from the investee E. Coming dividends procure abide to be commemorative as retaliate 9. A audience has been using the equity process to recital for its boarding. The audience sells portion-outs and does not abide to possess suggestive guide. Which of the subaffixed declarations is gentleman? A. A cumulative issue fluctuate in recitaling doctrine must take-place B. A prospective fluctuate in recitaling doctrine must take-place C. A retrospective fluctuate in recitaling doctrine must take-place D. The investor procure not admit coming dividends from the investee E. Coming dividends procure abide to bring the boarding recital 10. Following allocating absorb in extravagance of compass compute, which asset or amenforce would not be amortized aggravate a suited conduct? A. Absorb of commodities sold B. Property, insert, & equipment C. Patents D. Goodprocure E. Bonds payable 11. How are hoard issuance absorbs and trodden alliance absorbs treated in a employment alliance which is recitaled for as an wages when the ancillary procure hold its amalgamation? A. Hoard issuance absorbs are a keep-akeep-amultiply of the wages absorbs and the trodden alliance absorbs are expensed B. Trodden alliance absorbs are a keep-akeep-amultiply of the wages absorbs and the hoard issuance absorbs are a decrease to concomitant hired-in principal C. Trodden alliance absorbs are expensed and hoard issuance absorbs are a decrease to concomitant hired-in principal D. Twain are treated as keep-akeep-amultiply of the wages require E. Twain are treated as a decrease to concomitant hired-in principal 12. Lisa Co. hired specie for all of the voting despicable hoard of Victoria Corp. Victoria procure abide to rest as a unconnected fortification. Entries for the harmony of Lisa and Victoria would be commemorative in A. A worksheet B. Lisa's public chronicle C. Victoria's public chronicle D. Victoria's recondite harmony chronicle E. The public chronicles of twain companies 13. At the time of an wages which is not a hawking donation, the wages process A. Consolidates the ancillary's effects at honorable compute and the liabilities at compass compute B. Consolidates all ancillary effects and liabilities at compass compute C. Consolidates all ancillary effects and liabilities at honorable compute D. Consolidates exoteric effects and liabilities at compass compute, long-term effects and liabilities at honorable compute E. Consolidates the ancillary's effects at compass compute and the liabilities at honorable compute 14. Which of the subaffixed declarations is gentleman in-reference-to a statutory harmony? A. The initiatory companies disperse occasion cherishing as unconnected disunions of a newly created audience B. Twain companies wait in restence as allowable fortifications following a occasion one fortification now a ancillary of the acquiring audience C. The artificial audience disperses as a unconnected fortification and becomes a disunion of the acquiring audience D. The acquiring audience acquires the hoard of the artificial audience as an boarding E. A statutory harmony is no longer a allowable option 15. In a proceeding recitaled for using the donation process where absorb is short than honorable compute which declaration is gentleman? A. Negative goodprocure is commemorative B. A bplant security is commemorative C. Long-term effects of the artificial audience are bringd in adjustment to their honorable computes. Any extravagance is commemorative as a bplant security D.Long-term effects of the artificial audience are bringd in adjustment to their honorable computes. Any extravagance is commemorative as an marvelous construct E. Long-term effects and liabilities of the artificial audience are bringd in adjustment to their honorable computes. Any extravagance is commemorative as an marvelous construct 16. In a donation or wages where guide is achieved, how would the plant recitals of the committer and the plant recitals of the ancillary be combined? A. Entry A B. Entry B C. Entry C D. Entry D E. Entry E 17. In a pooling of portion-outs, A. Revenues and expenses are obscure for the total fiscal year, level if the alliance take-placered advanced in the year B. Goodprocure may be established C. Harmony is refined using the honorable computes of twain companies D. The proceedings may complicate the exfluctuate of preferred hoard or claim securities as courteous as despicable hoard E. The proceeding is uprightly regarded as an wages of one audience by another Prior to conduct conaffixed in a employment alliance, Botkins Inc. and Volkerson Corp. had the subaffixed hoardholders' equity figures: Botkins issued 56,000 new portion-outs of its despicable hoard computed at $3. 5 per portion-out for all of the uncollected hoard of Volkerson. 18. Assume that Botkins artificial Volkerson as a donation alliance. Immediately followingwards, what are obscure Concomitant Paid-In Principal and Retained Earnings, respectively? A. $133,000 and $360,000 B. $236,000 and $360,000 C. $130,000 and $360,000 D. $236,000 and $490,000 E. $133,000 and $490,000 19. Assume that Botkins and Volkerson were conduct affixed in a pooling of portion-outs and this take-placered on January 1, 2000, using the selfselfsame computes consecrated. Immediately followingwards, what is obscure Concomitant Paid-In Capital? A. 138,000 B. $266,000 C. $130,000 D. $236,000 E. $135,000 20. Chapel Hill Audience had despicable hoard of $350,000 and holded realizeings of $490,000. Blue Town Inc. had despicable hoard of $700,000 and holded realizeings of $980,000. On January 1, 2009, Blue Town issued 34,000 portion-outs of despicable hoard following a occasion a $12 par compute and a $35 honorable compute for all of Chapel Hill Company's uncollected despicable hoard. This alliance was recitaled for as an wages. Immediately following the alliance, what was the obscure net effects? A. $2,520,000 B. $1,190,000 C. $1,680,000 D. $2,870,000 E. $2,030,000