ACG 4201 ACG4201 Quiz 3 (Everest)

ACG4201 Quiz 3 (Everest)

1. Dividends paid by a subsidiary have the following affect on the consolidated cash flow
2. Consolidated Basic Earnings Per Share (BEPS) is calculated by dividing
3. Investor has a 40% ownership interest in the common stock of Investee. Investor paid $10,000 more than book value for its 40% interest and regards the excess as attributable to goodwill. If Investee reports income of $200,000 and pays dividends of $50,000, the operating activities of the consolidated statement of cash flows (indirect method) will reflect an adjustment of
4. Consolidated firms that meet the tax law requirements to be an affiliated group
5. Which of the following statements is true about the consolidated statement of cash flows?
6. A new subsidiary is being formed. The parent company purchased 70% of the shares for $20 per share. The remaining shares were sold to a variety of outside interests for an average of $18 per share. The consolidated statements will show
7. Which of the following statements is incorrect regarding a parent’s purchase of additional subsidiary shares?
8. Parent has purchased additional shares of subsidiary stock. If the original investment blocks are carried at cost, the conversion to simple equity is based upon
9. Parent has purchased additional shares of subsidiary stock. If the original investment blocks are carried at cost, the conversion to simple equity is based upon
10. Control of a subsidiary was achieved with the initial investment in subsidiary stock. When a subsequent block of subsidiary's stock is purchased