When Jolt Co acquired 75% of the common stock of Yelts Corp, Yelts owned land with a book value of $70,000 and a fair market value of $100,000.

1) What amount should have been reported for the land on a consolidated balance sheet, assuming the economic unit concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000

2) What amount should have been reported for the land on a consolidated balance sheet, assuming the proportionate consolidation concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000

3) What amount should have been reorted for the land on a consolidated balance sheet, assuming the parent company concept was used?
A) $70,000
B) $75,000
C) $85,000
D) $92,500
E) $100,000

Jan Caldwell

1) Which one of the following characteristics of preferred stock would make the stock resemble a liability?
A) The preferred stock is callable
B) The preferred stock is convertible
C) The preferred stock has warrants attached
D) The preferrred stock is noncumulative
E) The preferred stock is participating.

2) SFAS14 requires a U.S. corporation to disclose disaggregated information for
A)industry segments, geographic regions in the United States, and major customers
B)domestic and foreign operations, imported materials, export sales, and major
customers
C)industry segments, export sales, and imported materials
D)manufacturing, marketing, and administrative divisions of the company
E)industry segments, domestic and foreign operations, export sales, and major customers

3) Which of the following items is not one of the ten accounting issues most commonly
requiring adjustments in foreign reconciliations to U.S. GAAP?
A)Foreign currency translation
B)Employee compensation
C)Deferred taxes
D)Gain/loss on dispossal of assets
E)Interest expense

4) Which tests must a company use to determine which operating segments require
separate disclosure?
A)revenue test and asset test
B)revenue test, profit or loss test, and asset test
C) revenue test and profit or loss test
D) profit or loss testt and asset test
E) revenue test, asset test, and liability test

Jan Caldwell

1) What is a company's functional currency?
A) the currency of the primary economic environment in which it operates
B) the currency of the country where it has its headquarters
C) the currency in which is prepares its financial statements
D) the reporting currency of its parent for a subsidiary
E) the currency it chooses to designate as such

2) Whichof the following is not a factor influencing a country's financial reporting
practices?
A) Providers of financing
B) Inflation
C) Legal system
D) Gross National Profit
E) Political and economic ties