Day 22

Question 1

On consolidated BS what are the intercompany receivables balance?

Answer 1

Rule: 100% of all intercompany balances among members of a consolidated group are eliminated

MCQ-00455

Question 2

According to US GAAP, goodwill must be assessed?

Answer 2

Annually, and assessed the same time every year

MCQ-15847

Question 3

Goodwill should be tested for impairment value at which level?

Answer 3

Each reporting unit

MCQ-10956

Question 4

Rule: Intercompany transactions should be ________ upon consolidation.

Answer 4

Eliminated

EX: Loans, advances, receivables, etc.

MCQ-06947

Question 5

Rule: When members of a consolidated group have intercompany bond holdings, the bonds are eliminated in consolidation and the difference

Answer 5

(gain or loss) between the discount issue price and the premium on reacquisition would be included in RE

MCQ-00498

Question 6

On the BS, debt securities classified as held-to-maturity are valued how?

Answer 6

At amortized cost

Flashcards

Question 7

In acquisition accounting, state the consolidating WP elimination entry: CAR IN BIG

Answer 7

Dr Common Stock - sub
Dr APIC - sub
Dr RE - sub
Cr Investment in sub
Cr Noncontroling interest
Dr BS adjustment to fair value
Dr Identifiable intangible assets to fair value
Dr Goodwill

Flashcards

Question 8

For an AFS security transferred into the trading category, the portion of the unrealized holding gain or loss at the date of the transfer that have not been previously recognized in earnings shall be:

Answer 8

Recognized in earnings immediately

MCQ-08960

Question 9

When using the Current Expected Credit Losses (CECL) model. when an AFS debt security has a fair value that is below amortized cost, the asset must be:

Answer 9

written down to the lower fair value by recording a credit loss that is recognized on the income stmt

MCQ-05463