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Q1: Choose the right answer : 1- Which of the following statements about users of accounting information is incorrect? a-taxing authorities are external users b-present
Q1: Choose the right answer : 1- Which of the following statements about users of accounting information is incorrect? a-taxing authorities are external users b-present creditors are external users c-regulatory authorities are internal users. 2-Which of the following is a criterion for determining whether an operating segment is separately reportable ? a-segment liabilities are 10 percent or more of consolidated liabilities. b-segment profit or loss is 10 percent or more of consolidated net income. c-segment assets are 10 percent or more of combined segment assets. 3-When an investor uses the equity method to account for investments in common stock.cash dividends received by the investor from the investee should be recorded as a- a deduction from the investor's share of the investee's profit b-dividend income c-a deduction from the investment account. 4-Which of the following does not represent a primary motivation for business combinations? a-cost savings through elimination of duplicate facilities and staff. b-quick entry for new and existing products into markets. c-larger firms being less likely to fail. 5-Goodwill recognized in a business combination must be allocated among a firm's identified reporting units. If the fair value of a particular reporting unit with recognized goodwill falls below its carrying amount, which of the following is true? a-no goodwill impairment loss is recognized unless the implied value for goodwill exceeds its carrying amount. b-a goodwill impairment loss is recognized if the carrying amount for goodwill exceeds its implied value. c-a goodwill impairment loss is recognized for the difference between the reporting unit's fair value and carrying amount. 6- Which of the following is the appropriate basis for valuing fixed assets acquired in a business combination accounted for as a purchase carried out by exchanging cash for common stock? a-historic cost b-book value c-fair value
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