Scribd
Upload
60 views2 pages

Branch Accounting Multiple Choice Quiz

A home office's Investment in Branch account is an asset. When an asset is transferred from the home office to a branch, there is a debit to the Home Office account and a credit to the Investment in Branch account. A branch's Home Office account appears in the equity section of the branch's separate balance sheet, not the asset section of the company-wide balance sheet. The home office account on a branch's separate statement of financial position is presented as equity.

Uploaded by

Lesley Identity
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
60 views2 pages

Branch Accounting Multiple Choice Quiz

A home office's Investment in Branch account is an asset. When an asset is transferred from the home office to a branch, there is a debit to the Home Office account and a credit to the Investment in Branch account. A branch's Home Office account appears in the equity section of the branch's separate balance sheet, not the asset section of the company-wide balance sheet. The home office account on a branch's separate statement of financial position is presented as equity.

Uploaded by

Lesley Identity
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Part I.

Multiple Choice – Theories (Guerrero & Peralta, 2013)


1. A home office’s Investment in Branch account is a(n):
a. Asset
c. Unrealized income
b. Contra liability
d. Liability
2. When an asset is transferred to a branch from the home office, which of the following
occurs?
a. Only a memo entry is made
b. A credit to Home Office account
c. A debit to Home Office account
d. A credit to Investment in Branch account
3. Which of the following is not a reciprocal account?
a. Home office account
c. Inter-company transactions
b. Investment in Branch
d. Investment in subsidiary stock
4. Which of the following statements is incorrect regarding branch accounting?
a. A branch’s Home Office account appears in the asset section of a balance sheet
prepared by the company as a whole
b. A branch’s Home Office account appears in the equity section of the branch’s
separate balance sheet
c. Most branches maintain a complete set of books which includes a self- balancing set
of accounts
d. Sales agencies usually do not keep a complete self-balancing set of accounts.
5. In the separate statement of financial position of the branch, the home office account
shall be presented as
a. Liability
c. Asset
b. Equity
d. Income

Part I. Multiple Choice – Theories (Guerrero & Peralta, 2013)


1. A home office’s Investment in Branch account is a(n):
a. Asset
c. Unrealized income
b. Contra liability
d. Liability
2. When an asset is transferred to a branch from the home office, which of the following
occurs?
a. Only a memo entry is made
b. A credit to Home Office account
c. A debit to Home Office account
d. A credit to Investment in Branch account
3. Which of the following is not a reciprocal account?
a. Home office account
c. Inter-company transactions
b. Investment in Branch
d. Investment in subsidiary stock
4. Which of the following statements is incorrect regarding branch accounting?
a. A branch’s Home Office account appears in the asset section of a balance sheet
prepared by the company as a whole
b. A branch’s Home Office account appears in the equity section of the branch’s
separate balance sheet
c. Most branches maintain a complete set of books which includes a self- balancing set
of accounts
d. Sales agencies usually do not keep a complete self-balancing set of accounts.
5. In the separate statement of financial position of the branch, the home office account
shall be presented as
a. Liability
c. Asset
b. Equity
d. Income

You might also like