Review Test Test Review - Joseph Joseph

http://undergrad.floridatechonline.com/Scripts/TestEngine/UserTest/Rev...

Your test grade is 14.88 pts

The professor has configured this test to allow students to review: Questions answered incorrectly. Correct answers. Students answers.

QUESTION 1
[QUESTION BANK ID: 60047]

TYPE: MULTIPLE CHOICE

INCORRECT

Which of the following will result in the recognition of an impairment loss on goodwill? A B C D E Goodwill amortization is to be recognized annually on a systematic and rational basis Both the fair value of a reporting unit and its associated implied goodwill fall below their respective carrying values The fair value of the entity declines significantly The fair value of a reporting unit falls below the original consideration transferred for the acquisition The entity is investigated by the SEC and its reputation has been severely damaged

QUESTION 5
[QUESTION BANK ID: 125920]

TYPE: MULTIPLE CHOICE

INCORRECT

Which of the following is false regarding contingent consideration in business combinations? A B C D E Contingent consideration payable in cash is reported under liabilities Contingent consideration payable in stock shares is reported under stockholders' equity Contingent consideration is recorded because of its substantial probability of eventual payment The contingent consideration fair value is recognized as part of the acquisition regardless of whether eventual payment is based on future performance of the target firm or future stock price of the acquirer Contingent consideration is reflected in the acquirer's balance sheet at the present value of the potential expected future payment

QUESTION 8
[QUESTION BANK ID: 80223]

TYPE: MULTIPLE CHOICE

INCORRECT

Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2010, for $3,800 cash. As of that date, Hurley has the following trial balance:

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11/13/11 5:39 PM

Review Test

http://undergrad.floridatechonline.com/Scripts/TestEngine/UserTest/Rev...

Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used. Compute the amount of Hurley's equipment that would be reported in a December 31, 2011, consolidated balance sheet. A B C D E $0 $1,000 $1,250 $1,125 $1,200

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11/13/11 5:39 PM