Question
1a) When consolidating the accounts of a parent and subsidiary in subsequent years, eliminating entry (O) recognizes total write-offs of subsidiary revaluations: As of the
1a)
When consolidating the accounts of a parent and subsidiary in subsequent years, eliminating entry (O) recognizes total write-offs of subsidiary revaluations: | ||
As of the end of the current year. | ||
As of the beginning of the current year. | ||
As of the date of acquisition. | ||
For the current year. |
1b)
When consolidating the accounts of a parent and subsidiary in subsequent years, eliminating entry (R) recognizes revaluations of the subsidiary's assets and liabilities: |
| |
| For the current year. | |
| As of the beginning of the current year. | |
| As of the end of the current year. | |
| As of the date of acquisition. |
1c)
Consolidation eliminating entries (C), (E), (R), and (O) fully eliminate the parent's Investment in Subsidiary account at what stage? |
| |
| After eliminating entries (C), (E) and (R) | |
| After eliminating entries (C), (E), (R) and (O) | |
| After eliminating entries (C) and (E) | |
| After eliminating entry (C) |
1d)
Which statement is true concerning impairment testing of identifiable intangible assets, following U.S. GAAP? |
| ||
| A) | For limited life intangibles, the impairment loss is the difference between the sum of undiscounted expected cash flows and book value. | |
| B) | If the sum of undiscounted expected cash flows is less than book value, the impairment loss calculation for limited life intangibles is the same as for indefinite life intangibles. | |
| C) | A qualitative test may be used for both limited life and indefinite life intangibles. | |
| D) | A qualitative test may be used for limited life intangibles but not indefinite life intangibles. |
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