Acct 3533 Advanced Accounting Fall 2024 Test 1 Study Guide Chapter 1 1. MC Significant influence for a 30% investor characteristic? 2. MC After the date of acquisition, the equity investment account behaves how? 3. MC What amount of Equity Income should an investor report on its income statement for the year of acquisition? 4. MC What is the amount of Equity Investment on the balance sheet? 5. MC What is the Equity Investment balance at year end? 6. Short Answer. Prepare all entries related to the investment during the year. Chapter 2 7. MC Distinguish a business combination from a simple asset acquisition except. 8. MC When would a consolidation of a majority owned investee not be appropriate. 9. MC Why can't one just add together balance sheet accounts of the investor and investor in a consolidation. 10. MC Acquisition method of accounting characteristics. 11. MC What is debited to an Equity Investment account at the date of acquisition. 12. MC Compute the Equity Investment balance at the date of acquisition. Chapter 3 13. Short Answer. Given a set of facts: Equity Method a. Prepare the journal entry to record the investment in the subsidiary. b. Show the computation