Question
The freight on shipments to branch paid by the branch is recorded by the home office as a. Debit to freight-in b. Credit to freight-in
- The freight on shipments to branch paid by the branch is recorded by the home office as
a. Debit to freight-in
b. Credit to freight-in
c. Credit to investment account
d. Not recorded
2.Under fair value option, non-controlling interest would include its share of the following, except --
a. Book value of net assets acquired
b. Over and undervaluation of net assets due to change in fair value
c. Goodwill
d. Bargain purchase gain
3.If investment in branch account is greater than home office account, the home office might done the following, except
a. Allocated an expense to the branch, that the latter has not yet recorded
b. Shipped a merchandise to branch in transit
c. Recorded a depreciation expense
d. Received a return of inventory from the branch
4.Consolidated assets as of the acquisition date would include the --
a. Sum of parent's and subsidiary's assets at carrying amount
b. Sum of parent's and subsidiary's assets at current amount
c. Sum of parent's assets at carrying amount and subsidiary's assets at current amount
d. Sum of parent's assets at current amount and subsidiary's assets at carrying amount
5.Which of the following is not measured at fair value at acquisition date in a business combination?
a. Receivables
b. Intangibles
c. Assets held for sale
d. Contingent liabilities
6.Which of the following will make the home office account greater than the investment in branch account?
a. The branch paid a home office expense
b. The home office collected a branch customers' account
c. The branch reported a net income
d. The branch return a damaged merchandise to the home office
7.If the investment in branch account is less than the home office account, the home office failed to
a. Recognized the realized mark-up on branch inventory
b. Record the branch's net loss
c. Record the branch's net income
d. Record a home office expense paid by branch
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