Question 24 (1 point) Bela Ltd. has invested in several domestic manufacturing corporations. Which of the following inve
Posted: Sun Jun 05, 2022 6:48 pm
Question 24 (1 point)
Bela Ltd. has invested in several domestic manufacturing
corporations. Which of the following investments would most likely
be accounted for under the equity method on Bela's financial
statements?
Question 24 options:
A holding of 20,000 of the 25,000 outstanding common shares of
Earth-Clean Co.
A holding of 5,000 of the 60,000 outstanding common shares of
Earth-Kind Co.
A holding of 3,000 of the 10,000 outstanding preferred shares of
Earthbent Co.
A holding of 15,000 of the 50,000 outstanding common shares of
Earthwise Co.
Question 25 (1 point)
Assume that a nation has fully adopted IFRS. Which of the
following statements is true?
Question 25 options:
Although the nation has fully adopted IFRS, business enterprises
can choose to opt out as long as they have government approval to
do so.
Although the nation has fully adopted IFRS, standards may be
applied in different ways to suit the local environment.
Since the nation has fully adopted IFRS, IFRS must be applied to
all business enterprises in the nation.
Since the nation has fully adopted IFRS, all standards will be
applied in the same way as other nations that have fully adopted
IFRS.
Mitzi's Muffins Ltd. purchased a commercial baking system for
$150,000 at the beginning of 20X1. The estimated economic life of
the system is 10 years and Mitzi's uses straight-line amortization.
At the beginning of 20X3, Delicious Bakeries Ltd. acquired Mitzi's
in a business combination. At the time of acquisition, Mitzi's
baking system had a fair value of $140,000. At the end of 20X3, how
much amortization expense should Mitzi report?
Question 27 options:
$0
$15,000
$17,500
$14,000
DIY Ltd. owns 20 subsidiary companies. Most of the subsidiaries
are hardware stores operating in rural areas. One of the
subsidiaries has been having financial difficulties and has finally
decided to cease operations. Which of the following statements
about DIY's consolidated financial statements is true?
Question 29 options:
DIY is not required to disclose anything about this closure.
Whether DIY treats this as a discontinued operation depends on
if it used the cost method or the equity method to record the
subsidiary.
DIY should report this as a discontinued operation.
DIY should report any losses from this as part of its normal
operating activities.
Bela Ltd. has invested in several domestic manufacturing
corporations. Which of the following investments would most likely
be accounted for under the equity method on Bela's financial
statements?
Question 24 options:
A holding of 20,000 of the 25,000 outstanding common shares of
Earth-Clean Co.
A holding of 5,000 of the 60,000 outstanding common shares of
Earth-Kind Co.
A holding of 3,000 of the 10,000 outstanding preferred shares of
Earthbent Co.
A holding of 15,000 of the 50,000 outstanding common shares of
Earthwise Co.
Question 25 (1 point)
Assume that a nation has fully adopted IFRS. Which of the
following statements is true?
Question 25 options:
Although the nation has fully adopted IFRS, business enterprises
can choose to opt out as long as they have government approval to
do so.
Although the nation has fully adopted IFRS, standards may be
applied in different ways to suit the local environment.
Since the nation has fully adopted IFRS, IFRS must be applied to
all business enterprises in the nation.
Since the nation has fully adopted IFRS, all standards will be
applied in the same way as other nations that have fully adopted
IFRS.
Mitzi's Muffins Ltd. purchased a commercial baking system for
$150,000 at the beginning of 20X1. The estimated economic life of
the system is 10 years and Mitzi's uses straight-line amortization.
At the beginning of 20X3, Delicious Bakeries Ltd. acquired Mitzi's
in a business combination. At the time of acquisition, Mitzi's
baking system had a fair value of $140,000. At the end of 20X3, how
much amortization expense should Mitzi report?
Question 27 options:
$0
$15,000
$17,500
$14,000
DIY Ltd. owns 20 subsidiary companies. Most of the subsidiaries
are hardware stores operating in rural areas. One of the
subsidiaries has been having financial difficulties and has finally
decided to cease operations. Which of the following statements
about DIY's consolidated financial statements is true?
Question 29 options:
DIY is not required to disclose anything about this closure.
Whether DIY treats this as a discontinued operation depends on
if it used the cost method or the equity method to record the
subsidiary.
DIY should report this as a discontinued operation.
DIY should report any losses from this as part of its normal
operating activities.