Question 12
Which of the following kinds of transactions should be eliminated in the consolidating process?
Question 13
Which of the following statements concerning the primary beneficiary of a variable-interest entity is / are correct? I. The primary beneficiary has the ability to direct the most significant economic activities of the variable-interest entity. II. Only one entity can be the primary beneficiary of a variable-interest entity. III. The investor that has the greatest equity ownership in a variable-interest entity will be the primary beneficiary of the entity.
Question 14
Sun Co. is a wholly owned subsidiary of Star Co. Both companies have separate general ledgers, and prepare separate financial statements. Sun requires stand-alone financial statements. Which of the following statements is correct?
Question 15
P Co. purchased term bonds at a premium on the open market. These bonds represented 20 percent of the outstanding class of bonds issued at a discount by S Co., P ' s wholly owned subsidiary. P intends to hold the bonds until maturity. In a consolidated balance sheet, the difference between the bond carrying amounts in the two companies would be
Question 16
In which of the following circumstances of a business combination, if any, could the recognition of a gain occur at the time of the combination?
Question 17