It’s time to put what you’ve learned to the test, get 7 questions right to pass this unit.
1.
You are configuring the rules for subsequent consolidation of the equity method. Why is periodic reclassification selected?
Choose the correct answer.
2.
You are laying out the process for the booking of goodwill for the equity method. In the goodwill entry, what should you keep in mind?
Choose the correct answer.
3.
You are configuring a rule for first consolidation of the equity method. Which setting is used to identify whether the rule is for a purchase subsidiary or equity subsidiary?
Choose the correct answer.
4.
You have configured the rule for subsequent consolidation of the equity method. What happens when you run the investment elimination task?
There are two correct answers.
5.
You are configuring a rule for first consolidation of the equity method. What options do you have with regard to ownership percentages?
Choose the correct answer.
6.
When using the rule-based consolidation of investments for the equity method, how is goodwill handled?
There are two correct answers.
7.
You just ran the investment / equity elimination task. For the equity method, the investment for the parent is eliminated. What is the offsetting entry?
Choose the correct answer.
8.
After studying the equity method, what accounting entries do you expect to see after running the elimination task?