1) The terms minority Interest and noncontrolling interest are frequently used to describe owners of a business entity with similar, but not the same rights and influence over a company.

true or false?

2) The sum of the fair values of the controlling interest in a company and the noncontrolling interest in the same company are equal to the fair value of the company as a business unit.

true or flase?

3) The allocation of goodwill arising at the time a company acquires a controllina interest in a subsidiary will be allocated proportionately between the controlling and noncontrolling interests in the absence of a control

premium

true or flase?

4) Allocation of income to the noncontrolling interest in consolidated financial statements of a combined business requires allocating goodwill amortization expense to the noncontrolling Interest.

true or flase?

5) Using the Acquisition Method, a noncontrolling interest shares proportionately in the fair values of the subsidiary's net assets.

true or flase?

6) The nonconrolling interest in subsidiary entities is disclosed in the Owner's Equity section of the Balance Sheet of a consolidated business combination.

true or flase?

7) A parent corporation receives a disproportionate allocation of combination goodwill because the parent has pald proportionately more for its share of the company than the noncontrolling interest

true or false?

8) The accounting staff for a subsidiary entity submits trial balances reflecting the entire fiscal period to Its parent's accounting staff, and the numbers are used to complete the consolidated financial statements when the

parent's controlling ownership of its interest in the subsidiary was acquired mid-vear. This is acceptable under GAAP.

true or false?

9) When a company acquires a controlling interest in a subsidiary company in a series of stock purchases, and continues to acquire more stock after obtaining control, the treatment of the pre-control and post-control stock

acquisitions are accounted for differently in preparing consolidated financial statements.

true or flase?

10) When a parent companv sells shares of a controlled subsidlar, and continues to retain control, no galns or losses are recognized on the sales

true or flase?