SS2 ACCOUNTS SECOND term practice Questions Review

Question
Lilac has acquired 12,000 N1 shares in its subsidiary, Purple by issuing 5 of its own N1 shares for every 4 shares in Purple. The market value of Lilac shares is N6. Calculate the cost of investing in Purple.

Answer
Gross profit

Question
______ profit arises when a subsidiary is acquired with accumulated profit.

Answer
pre-acquisition

Question
_______ is acquired when premium is paid above the fair value of the net assets acquired over a subsidiary

Answer
Goodwill

Question
The Non-controlling interest in a subsidiary consists of shareholders who are not part of the parent company and they are totally unaffected by any distinction between pre- and post- acquisition ______.

Answer
profits

Question
In the purchase method of consolidation, assets and liabilities of subsidiaries are measured at ______ value on the date of acquisition

Answer
net present

Question
Cost of control account in a Group account can also be referred to as _________ account

Answer
Goodwill

Question
Under Group accounts, ______ share capital includes all share capital other than non-participating preference shares.

Answer
Equity

Question
Peach shall be deemed to be the subsidiary of Strawberry if _________

Answer
A, B & C

Question
The following are reasons why a parent entity is allowed not to present or prepare consolidated financial statements except ________

Answer
if the company is indebted to another company

Question
Before IFRS 3, there were two main methods of preparing consolidated financial statements, the purchase method and the pooling of interests method. Currently, IFRS 3 allows _______

Answer
only the purchase method

Question
A ________ is an enterprise that is controlled by another enterprise known as the parent.

Answer
subsidiary

Question
The following are items which must appear on the face of the statement of financial position as a minimum disclosure except ________

Answer
Gross profit

Question
Information is _______ if its omission or misstatement could affect or influence the decision making of users of financial statements

Answer
material

Question
________financial statements are the financial statements of a group presented as those of a single enterprise.

Answer
Consolidated

Question
When financial information are complete, neutral and free from error, users can refer to such information as _______

Answer
Faithful representation

Question
_______ are the standards that were in use in Nigeria before the adoption of IFRS.

Answer
SAS

Question
A ______ company is one that has one or more subsidiaries.

Answer
holding

Question
A group is defined as a parent company and its __________

Answer
subsidiaries

Question
The following are the elements of financial statements as stipulated in the conceptual framework except _______

Answer
Ratios

Question
Cash flows are basically reported under the following activities except _______

Answer
lending

Question
Lilac has acquired 12,000 N1 shares in its subsidiary, Purple by issuing 5 of its own N1 shares for every 4 shares in Purple. The market value of Lilac shares is N6. Calculate the cost of investing in Purple.

Answer
Gross profit

Question
______ profit arises when a subsidiary is acquired with accumulated profit.

Answer
pre-acquisition

Question
_______ is acquired when premium is paid above the fair value of the net assets acquired over a subsidiary

Answer
Goodwill

Question
The Non-controlling interest in a subsidiary consists of shareholders who are not part of the parent company and they are totally unaffected by any distinction between pre- and post- acquisition ______.

Answer
profits

Question
In the purchase method of consolidation, assets and liabilities of subsidiaries are measured at ______ value on the date of acquisition

Answer
net present

Question
Cost of control account in a Group account can also be referred to as _________ account

Answer
Goodwill

Question
Under Group accounts, ______ share capital includes all share capital other than non-participating preference shares.

Answer
Equity

Question
Peach shall be deemed to be the subsidiary of Strawberry if _________

Answer
A, B & C

Question
The following are reasons why a parent entity is allowed not to present or prepare consolidated financial statements except ________

Answer
if the company is indebted to another company

Question
Before IFRS 3, there were two main methods of preparing consolidated financial statements, the purchase method and the pooling of interests method. Currently, IFRS 3 allows _______

Answer
only the purchase method

Question
A ________ is an enterprise that is controlled by another enterprise known as the parent.

Answer
subsidiary

Question
The following are items which must appear on the face of the statement of financial position as a minimum disclosure except ________

Answer
Gross profit

Question
Information is _______ if its omission or misstatement could affect or influence the decision making of users of financial statements

Answer
material

Question
________financial statements are the financial statements of a group presented as those of a single enterprise.

Answer
Consolidated

Question
When financial information are complete, neutral and free from error, users can refer to such information as _______

Answer
Faithful representation

Question
_______ are the standards that were in use in Nigeria before the adoption of IFRS.

Answer
SAS

Question
A ______ company is one that has one or more subsidiaries.

Answer
holding

Question
A group is defined as a parent company and its __________

Answer
subsidiaries

Question
The following are the elements of financial statements as stipulated in the conceptual framework except _______

Answer
Ratios

Question
Cash flows are basically reported under the following activities except _______

Answer
lending

Question
Lilac has acquired 12,000 N1 shares in its subsidiary, Purple by issuing 5 of its own N1 shares for every 4 shares in Purple. The market value of Lilac shares is N6. Calculate the cost of investing in Purple.

Answer
Gross profit

Question
______ profit arises when a subsidiary is acquired with accumulated profit.

Answer
pre-acquisition

Question
_______ is acquired when premium is paid above the fair value of the net assets acquired over a subsidiary

Answer
Goodwill

Question
The Non-controlling interest in a subsidiary consists of shareholders who are not part of the parent company and they are totally unaffected by any distinction between pre- and post- acquisition ______.

Answer
profits

Question
In the purchase method of consolidation, assets and liabilities of subsidiaries are measured at ______ value on the date of acquisition

Answer
net present

Question
Cost of control account in a Group account can also be referred to as _________ account

Answer
Goodwill

Question
Under Group accounts, ______ share capital includes all share capital other than non-participating preference shares.

Answer
Equity

Question
Peach shall be deemed to be the subsidiary of Strawberry if _________

Answer
A, B & C

Question
The following are reasons why a parent entity is allowed not to present or prepare consolidated financial statements except ________

Answer
if the company is indebted to another company

Question
Before IFRS 3, there were two main methods of preparing consolidated financial statements, the purchase method and the pooling of interests method. Currently, IFRS 3 allows _______

Answer
only the purchase method

Question
A ________ is an enterprise that is controlled by another enterprise known as the parent.

Answer
subsidiary

Question
The following are items which must appear on the face of the statement of financial position as a minimum disclosure except ________

Answer
Gross profit

Question
Information is _______ if its omission or misstatement could affect or influence the decision making of users of financial statements

Answer
material

Question
________financial statements are the financial statements of a group presented as those of a single enterprise.

Answer
Consolidated

Question
When financial information are complete, neutral and free from error, users can refer to such information as _______

Answer
Faithful representation

Question
_______ are the standards that were in use in Nigeria before the adoption of IFRS.

Answer
SAS

Question
A ______ company is one that has one or more subsidiaries.

Answer
holding

Question
A group is defined as a parent company and its __________

Answer
subsidiaries

Question
The following are the elements of financial statements as stipulated in the conceptual framework except _______

Answer
Ratios


Question
Cash flows are basically reported under the following activities except _______

Answer
lending

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