Question $11(1$ point$)$

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How is the Noncontrolling Interest $($NCI$)$ reported in the consolidated financial statements?

Question $11$ options:

$1)$

As a liability

$2)$

As a separate component of stockholders' equity

$3)$

As part of retained earnings

$4)$

As a reduction of goodwill

Question $12(1$ point$)$

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Which of the following apply to a forward exchange contract?

I. It locks in an exchange rate for a future transaction.

II$.$ It eliminates all risks associated with currency fluctuations.

III. It involves a contractual obligation to exchange currencies.

Question $12$ options:

$1)$

I only

$2)$

II only

$3)$

I and III only

$4)$

II and III only

$5)$

I, II$,$ and III

Question $13(1$ point$)$

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Which of the following are true about goodwill in a business combination?

I. Goodwill is recorded when the purchase price exceeds the fair value of net assets.

II$.$ Goodwill is amortized over its useful life.

III. Goodwill is tested for impairment annually.

Question $13$ options:

$1)$

I only

$2)$

II only

$3)$

I and III only

$4)$

II and III only

$5)$

I, II$,$ and III

Question $14(1$ point$)$

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What is the effect of unrealized intercompany profits in ending inventory on consolidated financial statements?

Question $14$ options:

$1)$

Increases consolidated net income

$2)$

Decreases consolidated inventory and net income

$3)$

Increases consolidated inventory

$4)$

Has no effect on consolidated statements

Question $15(1$ point$)$

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Which statements apply to intercompany inventory sales in consolidation?

I. Unrealized profits in ending inventory are eliminated.

II$.$ Intercompany sales and cost of goods sold are eliminated in full.

III. Only the parent$$s share of unrealized profits is eliminated.

Question $15$ options:

$1)$

I only

$2)$

II only

$3)$

I and II only

$4)$

II and III only

$5)$

I, II$,$ and III