Question 3 Which of the following varies between the equity, initial value, and partial equity methods of accounting for an investment? A) the amount of consolidated net income. B) total assets on the consolidated balance sheet. C) total liabilities on the consolidated balance sheet. D) the balance in the investment account on the parent's books. E) the amount of consolidated cost of goods sold. Question 4 Push-down accounting is concerned with the A) impact of the purchase on the subsidiary's financial statements. B) recognition of goodwill by the parent. C) correct consolidation of the financial statements. D) impact of the purchase on the separate financial statements of the parent. E) recognition of dividends received from the subsidiary. Question 5 Masha and the Bear Corp. acquired all of the common stock of Vampirina Co. in 2011. Vampirina maintained its incorporation. Which of Masha and the Bear account balances would vary between the equity method and the initial value method? A) Goodwill, Investment in Vampirina Co., and Retained Earnings. B) Expenses, Investment in Vampirina Co., and Equity in Subsidiary Earnings. C) Investment in Vampirina Co., Equity in Subsidiary Earnings, and Retained Earnings. D) Common Stock, Goodwill, and Investment in Vampirina Co. E) Expenses, Goodwill, and Investment in Vampirina Co.

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Which of the following is not an example of a change in accounting principle? Multiple Choice A change to the equity method of accounting for investments. A change in the useful life of a depreciable asset. A change from LIFO to FIFO for inventory costing. A change to the full costing method in the extractive industries.

Which of the ratios listed helps to indicate whether current liabilities could be paid without having to sell the inventory? a.Current ratio b.Profit margin c.Quick ratio d.Debt to equity

Which limitation of an income statement occurs when one company uses an accelerated depreciation method while another company uses straight-line depreciation? O Companies omit from the income statement items they cannot measure reliably. O Income measurement involves judgment. O Income numbers are affected by the accounting methods employed. All of these answer choices are correct.

10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV

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