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Study sets matching "advanced accounting chapter 1"

15 terms
Advanced Accounting Chapter 1
Equity Method
Fair value method
Goodwill
Amortizing assets
Used whenever a company buys enough interest in a company to…
Used whenever the investor owns part of a company, but not en…
recognized when there is an access paid to acquire a company…
is considered a reduction in ownership under the Equity Metho…
Equity Method
Used whenever a company buys enough interest in a company to…
Fair value method
Used whenever the investor owns part of a company, but not en…
27 terms
Advanced accounting - chapter 1
What is a merger?
What is a business consolidation?
What is the pooling-of-interests method?
What is the acquisition method?
When an existing company acquires another company and combine…
2 or more companies join together to form one new continuing…
Records the assets and liabilities of the acquired firm at th…
Requires that all assets and liabilities be recorded at fair…
What is a merger?
When an existing company acquires another company and combine…
What is a business consolidation?
2 or more companies join together to form one new continuing…
23 terms
CHAPTER 1 ACCOUNTING TERMS - ADVANCED
ASSET
LIABILITY
EQUITIES
OWNER'S EQUITY
Anything of value that is owned
An amount that is owed by a business
Financial rights to the assets of the business
The amount remaining after the value of all liabilities is su…
ASSET
Anything of value that is owned
LIABILITY
An amount that is owed by a business
Advanced Accounting Chapter 1
assets
accounting cycle
accounting equation
double entry accounting
Items of value owned or controlled by a business
the activities a business completes within a fiscal year to k…
assets = liabilities + stockholders' /owners' equity
an accounting system in which every business transaction affe…
assets
Items of value owned or controlled by a business
accounting cycle
the activities a business completes within a fiscal year to k…
57 terms
Advanced Accounting Chapter 1
Transaction
Merger
Acquisition
Valuation of Business Entities
-one firm gaining control of another firm with both firms con…
In a merger, the combining companies become one legal entity…
In an acquisition, the combining companies continue as separa…
assessing the overall value of a company often includes: ... -va…
Transaction
-one firm gaining control of another firm with both firms con…
Merger
In a merger, the combining companies become one legal entity…
20 terms
Advanced Accounting - Chapter 1
Goodwill represents the excess of the…
In a business combination, costs of re…
Which of the following is the appropri…
In a business combination in which an…
Sum of the fair values assigned to identifiable assets acquir…
Reduction of the recorded value of the securities.
Fair value.
No answer listed is correct.
Goodwill represents the excess of the…
Sum of the fair values assigned to identifiable assets acquir…
In a business combination, costs of re…
Reduction of the recorded value of the securities.
21 terms
Advanced Accounting Chapter 1 Vocabulary
asset
liability
equities
owners' equity
anything of value that is owned
an amount owed by a business
financial rights to the assets of a business
the amount remaining after the value of all liabilities is su…
asset
anything of value that is owned
liability
an amount owed by a business
15 terms
Advanced Accounting Chapter 1
Equity Method
Fair value method
Goodwill
Amortizing assets
Used whenever a company buys enough interest in a company to…
Used whenever the investor owns part of a company, but not en…
recognized when there is an access paid to acquire a company…
is considered a reduction in ownership under the Equity Metho…
Equity Method
Used whenever a company buys enough interest in a company to…
Fair value method
Used whenever the investor owns part of a company, but not en…
15 terms
Advanced Accounting Chapter 1
Equity Method
Fair value method
Goodwill
Amortizing assets
Used whenever a company buys enough interest in a company to…
Used whenever the investor owns part of a company, but not en…
recognized when there is an access paid to acquire a company…
is considered a reduction in ownership under the Equity Metho…
Equity Method
Used whenever a company buys enough interest in a company to…
Fair value method
Used whenever the investor owns part of a company, but not en…
21 terms
Advanced Accounting: Chapter 1
cute accounting
cooking the books
fraudulent financial reporting
standards of ethical conduct for manag…
to describe stretching the form of accounting standards to th…
to indicate fraudulent financial reporting
intentional or reckless conduct, whether act or omission, tha…
obligations to be competent, credible, have integrity, and th…
cute accounting
to describe stretching the form of accounting standards to th…
cooking the books
to indicate fraudulent financial reporting
27 terms
Advanced accounting - chapter 1
What is a merger?
What is a business consolidation?
What is the pooling-of-interests method?
What is the acquisition method?
When an existing company acquires another company and combine…
2 or more companies join together to form one new continuing…
Records the assets and liabilities of the acquired firm at th…
Requires that all assets and liabilities be recorded at fair…
What is a merger?
When an existing company acquires another company and combine…
What is a business consolidation?
2 or more companies join together to form one new continuing…
24 terms
Adv Accounting Chapter 1
account
accounting equation
asset
controlling account
A record that summarizes all the transactions pertaining to a…
An equation showing the relationship among assets, liabilitie…
Anything of value that is owned.
An account in a general ledger that summarizes all accounts i…
account
A record that summarizes all the transactions pertaining to a…
accounting equation
An equation showing the relationship among assets, liabilitie…
30 terms
Advanced Accounting Chapter 1 FUN
Asset
Merchandising Business
Which journal would you to journalize…
Where would you journalize buying merc…
Anything of value that you own
A business that purchases and sells goods
Purchases Journal
Cash Payments Journal
Asset
Anything of value that you own
Merchandising Business
A business that purchases and sells goods
16 terms
Advanced Accounting Chapter 1
Growth in the complexity of the U.S. b…
Which of the following is not an appro…
Which of the following actions is like…
When an existing company creates a new…
Has led to increasingly complex organizational structures as…
The parent wishes to be able to increase its reported sales b…
Randolph acquires Penn Corporation in a business combination…
The new entity records both the assets and liabilities it rec…
Growth in the complexity of the U.S. b…
Has led to increasingly complex organizational structures as…
Which of the following is not an appro…
The parent wishes to be able to increase its reported sales b…
13 terms
Advanced Accounting Chapter 1
A company should always use the equity…
On January 1, 2011, Dermot Company pur…
On January 1, 2013, Jordan Inc. acquir…
Club Co. appropriately uses the equity…
It has the ability to exercise significant influence over the…
It must restate the financial statements for 2012 and 2011 as…
Jordan should use the fair-value method for 2014 and future y…
No accounting because the decline in fair value is temporary.
A company should always use the equity…
It has the ability to exercise significant influence over the…
On January 1, 2011, Dermot Company pur…
It must restate the financial statements for 2012 and 2011 as…
27 terms
Advanced accounting - chapter 1
What is a merger?
What is a business consolidation?
What is the pooling-of-interests method?
What is the acquisition method?
When an existing company acquires another company and combine…
2 or more companies join together to form one new continuing…
Records the assets and liabilities of the acquired firm at th…
Requires that all assets and liabilities be recorded at fair…
What is a merger?
When an existing company acquires another company and combine…
What is a business consolidation?
2 or more companies join together to form one new continuing…
27 terms
Advanced accounting - chapter 1
What is a merger?
What is a business consolidation?
What is the pooling-of-interests method?
What is the acquisition method?
When an existing company acquires another company and combine…
2 or more companies join together to form one new continuing…
Records the assets and liabilities of the acquired firm at th…
Requires that all assets and liabilities be recorded at fair…
What is a merger?
When an existing company acquires another company and combine…
What is a business consolidation?
2 or more companies join together to form one new continuing…
30 terms
Advanced Accounting, Chapter 1 - Morehead
How does income, losses, dividends dec…
If an investor holds 20-50% of voting…
How is the "assign to" amount calculat…
Gross Profit =
Income - increase... loss - decrease... dividends - decrease... amorti…
significant influence is normally assumed and equity method i…
difference between carry amount and fair value
Sales - CGS
How does income, losses, dividends dec…
Income - increase... loss - decrease... dividends - decrease... amorti…
If an investor holds 20-50% of voting…
significant influence is normally assumed and equity method i…
11 terms
Advanced accounting- chapter 1 vocab
Purchases discount
Liability
Owners equity
Accounting equation
A cash discount
An amount owned by a business
The amount remaining after the value of all liabilities is su…
Equation showing the relationships between among assets, liab…
Purchases discount
A cash discount
Liability
An amount owned by a business
24 terms
advanced accounting chapter 1 vocab
account
accounting equation
asset
cash discount
a record summarizing all the information pertaining to a sing…
an equation showing the relationship among assets, liabilitie…
anything of value that is owned
a deduction that a vendor allows on the invoice amount to enc…
account
a record summarizing all the information pertaining to a sing…
accounting equation
an equation showing the relationship among assets, liabilitie…
24 terms
Advanced Accounting Chapter 1 Vocab
Asset
Liability
Equities
Owners' Equity
Anything of value that is owned.
An amount owed by a business.
Finical rights to the assets of a business.
The amount remaining after the value of all liabilities is su…
Asset
Anything of value that is owned.
Liability
An amount owed by a business.
36 terms
Advanced Accounting Vocab Chapter 1
Accounting for investments in the voti…
Degree to which the company making the…
Operating activities of the company in…
The investment account is reported on…
Equity Investments
The investor
The investee
No Influence (Market Method)
Accounting for investments in the voti…
Equity Investments
Degree to which the company making the…
The investor
23 terms
Accounting II Chapter 1 Advanced
Account
Accounting Cycle
Assets
Cash payments journal
a record of the increases & decreases and the balance for a s…
refers to the activities a business completes within a fiscal…
items of value owned or controlled by a business
the special journal used to record all transactions in which…
Account
a record of the increases & decreases and the balance for a s…
Accounting Cycle
refers to the activities a business completes within a fiscal…
12 terms
Beam's advanced accounting 12e (Chapter 1)
Business combinations
Horizontal integration
Vertical integration
Conglomeration
Unite previously separate entities.
Combination of firms in the same business lines and markets.
Combination of firms with operations in different, but succes…
Combination of firms with diverse products or service functio…
Business combinations
Unite previously separate entities.
Horizontal integration
Combination of firms in the same business lines and markets.
24 terms
Chapter 1 (Adv. Accounting)
asset
liability
equities
owners' equity
Anything of value that is owned
An amount owed by a business
Financial rights to the assets of a business
The amount remaining after the value of all liabilities is su…
asset
Anything of value that is owned
liability
An amount owed by a business
5 terms
Advanced Accounting Ch 1
On January 1, Puckett Company paid $2.…
In January 2014, Domingo, Inc., acquir…
On January 1, 2013, Pierce, Inc., purc…
Pine Company owns 40 percent (76,000 s…
$2,434,400.... ... Acquisition price $ 2,240,000 ... Equity incom…
$921,600.... Acquisition price $ 877,000 ... Inc accruals: 2014—$…
total income accrual (no unearned gains) $182,845 ... As gain on…
Equity income $186,036 ... Other comprehensive loss $(83,600) ... G…
On January 1, Puckett Company paid $2.…
$2,434,400.... ... Acquisition price $ 2,240,000 ... Equity incom…
In January 2014, Domingo, Inc., acquir…
$921,600.... Acquisition price $ 877,000 ... Inc accruals: 2014—$…
7 terms
ACC 642 chapter 1 advanced accounting
d. A deduction from the investment acc…
b. The investor owns 30 percent of the…
c. A retrospective adjustment is made…
b. Changes in the fair value of the in…
1. When an investor uses the equity method to account for inv…
2. Which of the following does not indicate an investor compa…
3. Sisk Company has owned 10 percent of Maust, Inc., for the…
4. Under fair-value accounting for an equity investment, whic…
d. A deduction from the investment acc…
1. When an investor uses the equity method to account for inv…
b. The investor owns 30 percent of the…
2. Which of the following does not indicate an investor compa…
17 terms
AC 405 Advanced Accounting Chapter 1
A business combination occurs when.....
1. statuary merger... 2. statutory consol…
statuary merger
statutory consolidation
an acquirer obtains control of one or more businesses
What are the three forms of business combinations?
Results when company B is absorbed into company A; B ceases t…
A new corporation Company C, is organized to absorb the activ…
A business combination occurs when.....
an acquirer obtains control of one or more businesses
1. statuary merger... 2. statutory consol…
What are the three forms of business combinations?
10 terms
Chapter 1 and 2 Formulas (Advanced Accounting)
Quick ratio
Current Ratio
Gross margin ratio
Return on sales ratio
Cash + short term investments + receivables/Current Liabilities
Current assets/Current liabilities
Gross margin/Sales
Net income/Sales
Quick ratio
Cash + short term investments + receivables/Current Liabilities
Current Ratio
Current assets/Current liabilities
25 terms
Chapter 1 Advanced Accounting Honors Terms
Asset
Liability
Equities
Owner's equity
Anything of value owned
An amount owned by a business
Financial rights to the assets of a business
Amount remaining after value of all liabilities is subtracted…
Asset
Anything of value owned
Liability
An amount owned by a business
10 terms
Leap Advanced, Chapter 1
commitment
mobilize
per diem
revenue
A sense of dedication and obligation to someone or something
To assemble into readiness for active service; especially in…
A flat daily rate of reimbursement for business expenses or d…
All the money taken in by a business
commitment
A sense of dedication and obligation to someone or something
mobilize
To assemble into readiness for active service; especially in…
41 terms
Advanced Accounting-Ch 1
accounting equation
asset
liability
equities
asset = liabilities + owner's equity
anything of value that is owned
an amount owed by a business
financial rights to the assets of a business
accounting equation
asset = liabilities + owner's equity
asset
anything of value that is owned
42 terms
Chapter 1: Advanced Vocabulary
estremecer
arrebatar
albergar
balbucear
to shudder
to snatch
to accommodate, house, harbour
to stutter, to babble
estremecer
to shudder
arrebatar
to snatch
11 terms
Advanced Accounting Midterm; Chapter 1 Review
Fair Value Method
Consolidation
Equity Method
Ability to exercise significant influe…
1. Applied by an investor when only a small percentage of a c…
When one firm controls another
1. Applied when the investor has the ability to exercise sign…
Determined by several factors; representation on board of dir…
Fair Value Method
1. Applied by an investor when only a small percentage of a c…
Consolidation
When one firm controls another
17 terms
Advance accounting chapter 1
19. In a situation where the investor…
20. All of the following would require…
21. All of the following statements re…
22. A company has been using the fair-…
d. entry 2 only... Debit to Cash (for dividends received from th…
C. valuation at fair value.
B. Dividends received are reported as revenue.
C. A retrospective change in accounting principle must occur.
19. In a situation where the investor…
d. entry 2 only... Debit to Cash (for dividends received from th…
20. All of the following would require…
C. valuation at fair value.
Adv Accounting Chapter 1
Asset
liability
equities
owners equity
anything of value that is owned
an amount owed by a business
financial rights to the assets of a business
the amount remaining after the value of all liabilities is su…
Asset
anything of value that is owned
liability
an amount owed by a business
10 terms
Advanced Word Power Chapter 1
affinity
fledgling
hackneyed
incessant
a preference
new
worn-out
nonstop
affinity
a preference
fledgling
new
10 terms
Advanced Accounting Ch1
Business Combinations
Merger
Consolidation
6 Types of Mergers
A comprehensive term covering all acquisitions pf one firm by…
Applies when an existing company acquires another company and…
Applies when two or more previously separate firms join and b…
Backward Vertical Integration ... Forward Vertical Integration... H…
Business Combinations
A comprehensive term covering all acquisitions pf one firm by…
Merger
Applies when an existing company acquires another company and…
54 terms
advanced accounting chapter one
accounting
accounting and information system func…
accounting equation
accrual basis of accounting
the information infrastructure of the firm/economy that permi…
the function that is responsible for providing useful informa…
assets always equal liabilities plus owners' equity
a system in which income is measured as the difference betwee…
accounting
the information infrastructure of the firm/economy that permi…
accounting and information system func…
the function that is responsible for providing useful informa…
14 terms
Advanced Accounting Chapter 2
Contingencies
3 different approaches to valuing assets
Professional Fees
Regulation Expenses
occur when there is a disagreement on the price between the i…
1: Market Approach, estimates fair values using other market…
accounting fees that are needed to get the fair value ready.…
require debiting of APIC, instead of debiting an expense
Contingencies
occur when there is a disagreement on the price between the i…
3 different approaches to valuing assets
1: Market Approach, estimates fair values using other market…
11 terms
Advanced accounting Ch 1
Types of mergers
tax benefits
controlling interest
Defenses against unfriendly offers
Backward vertical, forward vertical, horizontal, product exte…
accept stock to create a tax free reorganization, transferabl…
typically more than 50% and creates parent and sub relationship
greenmail, white knight, poison pill, selling the crown jewel…
Types of mergers
Backward vertical, forward vertical, horizontal, product exte…
tax benefits
accept stock to create a tax free reorganization, transferabl…
17 terms
Advanced American History Chapter 1
Hiawatha
Martin Luther
Vasco de Gama
Hernan Cortez
Indian from the Iroquois tribe who was one of two men who per…
A German monk who became one of the most famous critics of th…
• Vasco de Gama was a Portugese explorer who was the first Eu…
Spanish conquistador who defeated the Aztec Empire (even thou…
Hiawatha
Indian from the Iroquois tribe who was one of two men who per…
Martin Luther
A German monk who became one of the most famous critics of th…
24 terms
Advanced Accounting Ch.1
Acquisition method
Bargain purchase
Business combination
Consolidated financial statements
acquirer recognizes allocates acquired and all liabilities as…
FV of the consideration given in a business combination, alon…
occurs when an acquirer obtains control of one or more busine…
portrays related companies as if they were actually a single…
Acquisition method
acquirer recognizes allocates acquired and all liabilities as…
Bargain purchase
FV of the consideration given in a business combination, alon…
26 terms
Advanced Math Chapter 1 Vocabulary
rate
unit rate
complex fraction
Numerator
A rate that compares two quantities with different kinds of u…
A rate that has been simplified so that it has a denominator…
Fractions with a numerator, denominator, or both that are als…
The number in a fraction that is written above the division l…
rate
A rate that compares two quantities with different kinds of u…
unit rate
A rate that has been simplified so that it has a denominator…
49 terms
Advanced Accounting, exam 1
When an investor uses the equity metho…
Which of the following does not indica…
Sisk Company has owned 10% of Maust, I…
Under the fair-value option, which of…
A deduction from the investment account
The investor owns 30% of the investee but another owner holds…
A retrospective adjustment is made to restate all prior years…
Changes in the fair value of the investor's ownership in shar…
When an investor uses the equity metho…
A deduction from the investment account
Which of the following does not indica…
The investor owns 30% of the investee but another owner holds…
10 terms
Advanced Word Power Chapter 1
affinity
fledgling
hackneyed
incessant
(n) a preference;a natural attraction or liking
(adj) new; new and untried; inexperienced
(adj) worn-out;overused; stale; trite
(adj) nonstop; constant; without stopping
affinity
(n) a preference;a natural attraction or liking
fledgling
(adj) new; new and untried; inexperienced
36 terms
Advanced Accounting 10E Chapter 4
Fiscal period
Fiscal year
Schedule of accounts payable
Schedule of accounts receivable
The length of time for which a business summarizes its financ…
A fiscal period consisting of 12 consecutive months.
A listing of vendor accounts, account balances, and the total…
A listing of customer accounts, account balances, and total a…
Fiscal period
The length of time for which a business summarizes its financ…
Fiscal year
A fiscal period consisting of 12 consecutive months.
10 terms
Advanced Word Power Chapter 1
affinity
fledgling
hackneyed
incessant
(n) a preference;a natural attraction or liking
(adj) new; new and untried; inexperienced
(adj) worn-out;overused; stale; trite
(adj) nonstop; constant; without stopping
affinity
(n) a preference;a natural attraction or liking
fledgling
(adj) new; new and untried; inexperienced
16 terms
Advanced Accounting Chap 1-4
Subsidiary
Parent company
special purpose entity
business combination
conduct certain business activities, separate legal entity so…
controls majority of the ownership of its common stock
(SPE) Is, in general, a financing vehicle that is not substan…
acquirer obtains control of one or more business
Subsidiary
conduct certain business activities, separate legal entity so…
Parent company
controls majority of the ownership of its common stock
10 terms
Advanced Vocabulary Chapter 1
fledgling
opulence
proximity
hackneyed
new and untried; inexperienced
luxury; great wealth
closeness
overused; stale; trite
fledgling
new and untried; inexperienced
opulence
luxury; great wealth
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