ACC 419 NOUN TMA Past Questions & Answers 2019

1. 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

2. Question
______ profit arises when a subsidiary is acquired with accumulated profit.
Answer
pre-acquisition

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

4. 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

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

6. Question
Cost of control account in a Group account can also be referred to as _________ account
Answer
Goodwill

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

8. Question
Peach shall be deemed to be the subsidiary of Strawberry if _________
Answer
A B & C

9. 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

10. 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

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

12. Question
The following are items that must appear on the face of the statement of financial position as a minimum disclosure except ________
Answer
Gross profit

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

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

15. Question
When financial information is complete, neutral, and free from error, users can refer to such information as _______
Answer
Faithful representation

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

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

19. Question
A group is defined as a parent company and its __________
Answer
subsidiaries

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

La2ush

Moderator
21. Question
Cash flows are basically reported under the following activities except _______
Answer
lending

22. 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

23. Question
______ profit arises when a subsidiary is acquired with accumulated profit.
Answer
pre-acquisition

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

25. 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

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

27. Question
Cost of control account in a Group account can also be referred to as _________ account
Answer
Goodwill

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

30.Question
Peach shall be deemed to be the subsidiary of Strawberry if _________
Answer
A B & C
 
Top