Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Students have asked these similar questions
Which of the following are examples of the correct application/interpretation of the going concern assumption?
Select one:
O a. The sole shareholder of Monterey Bay Awnings, Inc. plans to liquidate the business in 15 to 20 years, but still continues to
record acquired assets at historical cost.
Ob. IBM, a stable company, reports the historical cost of its fixed assets in its balance sheet.
c. Trexco, a company filing for liquidation, has restated its balance sheet to show the estimated net realizable value of its
assets.
d. Both B and C are correct examples.
e. All the above are correct examples.
When we are preparing consolidated financial statements, will we have to eliminate the parent entity's investment in the subsidiaries each year as part of our consolidation entries, or will we have to do the elimination only in the first year following acquisition, but only thereafter? Why?
1) Shrimp Boat Company decides to
consolidate its operations with Trawlers, Inc.,
to form Unique Fishers Corporation (UFC).
Trawlers had rights in certain property. After
the consolidation, UFC acquires the rights:
A.automatically.
B.only after completing certain additional
statutory procedures.
C.only if Trawlers' former shareholders
expressly approve.
D.only if the acquisition is a specified result of
the consolidation.
2) Jake is the maker of a $2,000 promissory
note payable to Kim. Kim indorses the note to
Lou who, in turn, indorses it to Mona, who
then indorses it to Nat, the present holder.
Nat properly presents the note to Jake for
payment, but Jake dishonors it. With timely
notice to the proper parties, Nat may collect
payment on the note from
Kim, Lou, or Mona.
Kim or Lou only.
Mona only.
no one.
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