It’s time to put what you’ve learned to the test, get all the questions right to pass this unit.
Q1.
When you acquire new subsidiaries, you need to add them to the consolidation group with the consolidation method assignment. What methods are relevant to rule-based consolidation?
There are two correct answers.
A
20-Equity
B
22-Equity
C
00-Parent
D
11-Purchase Method
Q2.
At ABC Corporation, you are in the process of acquiring a French and Canadian subsidiary. You need to create a reclassifcation method to automate the accounting entries.
There are two correct answers.
A
The accounting entries related to the investee's net income after the acquisition are referred to as first consolidation.
B
The accounting entries related to the initial acquisition are referred to as first consolidation.
C
The accounting entries related to the initial acquisition are referred to as subsequent consolidation.
D
The accounting entries related to the investee's net income after the acquisition are referred to as subsequent consolidation.