ANSWERS FOR MULTIPLE-CHOICE QUESTIONS
Chapter 2
1. c 2. d 3. a 4. a 5. b
Chapter 3
1. c 2. b 3. c
Chapter 4
1. b 2. a 3. d 4. b 5. c
Chapter 5
1. c 2. a 3. c 4. c
Chapter 6
1. c 2. b 3. e 4. a 5. c
Chapter 7
1. b 2. d 3. e 4. a
Chapter 8
1. b 2. c 3. c 4. a
Chapter 9
1. d 2. c 3. d 4. b 5. a
6. d 7. d
Chapter 10
1. a 2. b 3. b
Chapter 11
1. c 2. c 3. b 4. d 5. d
6. c 7. a 8. d 9. c 10. a
11. c 12. c 13. b 14. a 15. d
16. d 17. a 18. c
Chapter 12
1. d 2. a 3. c 4. c 5. d
6. b
Chapter 13
1. d 2. d 3. b 4. d 5. a
Chapter 14
1. d 2. b 3. c 4. a 5. d
6. d 7. b
Chapter 15
1. c 2. d 3. a 4. d 5. a
6. a 7. d 8. c 9. b 10. a
11. d 12. c* 13. b 14. d
Chapter 16
1. a 2. c[6] 3. b 4. a
Chapter 17
1. a 2. c 3. b 4. c 5. d
Chapter 18
1. c 2. a 3. d 4. b 5. c
Chapter 19
1. b 2. b 3. d 4. c 5. b
6. c 7. b
Chapter 20
1. c 2. d 3. c 4. a
Chapter 21
1. c 2. b 3. b 4. c 5. a
6. c
Chapter 22
1. d 2. b 3. d 4. a 5. b
6. c 7. d 8. c
Chapter 23
1. c 2. b 3. b 4. b 5. a
6. b 7. b 8. a 9. a
Chapter 24
1. a 2. e 3. b 4. a 5. b
6. d 7. b 8. a 9. a
Chapter 25
1.a 2. b
Chapter 26
1. c 2. b 3. d 4. a
Chapter 27
1. c 2. a 3. b 4. d
[4] At January 1, 2008: cost $10 million – 30% of $20 million= 4 At January 1, 2009: cost $15 million – 40% of $25 million = 5/9 (Entity A has not accounted for the initial purchase as an associate.)
[5] Cost of acquisition (Mask's shareholders own 60% of equity of Man) In order for 40% of Mask's shares to be owned by shareholders of Man, Mask needs to issue 4 million shares. Therefore, cost of acquisition is 4 million x $6 ...