Consolidation and Financial Reporting: A Quiz on Key ConceptsThis quiz consist of 15 multiple choice questions and covers the materialinChapter 3. Be sure you are in Chapter3 when you take the quiz.Question 12 out of 2 pointsIf anentity is not considered a VIE, the determination of consolidation is based onwhetherAnswerSelectedAnswer:one of the entities in the consolidated group directly or indirectly has acontrolling financial interest (usually ownership of a majority votinginterest) in the other entities.CorrectAnswer:one of the entities in the consolidated group directly or indirectly has acontrolling financial interest (usually ownership of a majority votinginterest) in the other entities.Question 22 out of 2 pointsOn January 1, 2013, Prima Corporation acquired 80 percent of Sunder Corporation'svoting common stock. Sunders'sbuildings and equipment had a book value of $300,000and a fair value of $350,000 at the time of acquisition. At what amount will Sunder’sbuildings and equipment will be reported in the consolidated statements ?AnswerSelected Answer:$350,000Correct Answer:$350,000Question 32 out of 2 pointsWhat is the method of presentation required by SFAS 160 of “non-controlling interest”on a consolidated balance sheet?AnswerSelected Answer:As a part ofstockholders' equity.Preview Mode
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