MULTIPLE CHOICE
1. In a working paper for combined financial statements of home office and branch, the branch's net income is included in: (Points : 1)
2. If both the home office and the branch of a business enterprise use the perpetual inventory system, a Shipments to Branch ledger account appears in the accounting records of: (Points : 1)
3. The following journal entry (explanation omitted) appeared in the accounting records of Marty Corporation's only branch:
Operating Expenses 600,000
Home Office 600,000
The journal entry indicates that: (Points : 1)
4. Direct out-of-pocket costs of a business combination that are part of the cost of the combinee do not include: (Points : 1)
5. The Income: Branch ledger account is maintained in the accounting records of: (Points : 1)
6. In a business combination, the appropriate accounting for an excess of current fair values the combinee's identifiable net assets over the combinor's cost is to: (Points : 1)
7. The Shipments to Branch ledger account in the accounting records of the home office of a business enterprise: (Points : 1)
8. The business enterprises that enter into a business combination are termed the: (Points : 1)
9. If at the end of an accounting period the balance of the Investment in Branch ledger account in the accounting records of the home office is $20,000 and the balance of the Home Office account in the accounting records of the branch (after the branch recorded closing entries) is $25,500, the most likely explanation for the discrepancy of $5,500 is a: (Points : 1)
10. The Home Office ledger account in the accounting records of a branch is best described as: (Points : 1)
Click here for the solution: In a working paper for combined financial statements of home office and branch, the branch's net income is included in
