4. Statement 1: In the sale of a financial asset measured at fair value through OCI, the difference between the selling price and the carrying amount is recorded as a gain or loss on sale of investment. Statement 2: When the fair value of a financial asset measured at fair value through OCI is higher than its carrying amount, an unrealized loss-OCI is debited. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false

4. Statement 1: In the sale of a financial asset measured at fair value through OCI, the difference between the selling price and the carrying amount is recorded as a gain or loss on sale of investment. Statement 2: When the fair value of a financial asset measured at fair value through OCI is higher than its carrying amount, an unrealized loss-OCI is debited. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11MC: Which of the following would trigger a subtraction in the indirect operating section? A. gain on...

See similar textbooks

Similar questions

6. Statement 1: Unrealized gains or losses from financial assets measured at fair value through OCI are closed to Retained Earnings at the end of the accounting period. Statement 2: If a company’s business model for debt investment is achieved by collecting contractual cash flows and by selling the financial asset, such investment should be designated as a financial asset measured at amortized cost. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false
Statement 1: If the financial asset is measured at fair value through profit or loss, transaction costs directly attributable to the acquisition are expensed immediately when incurred. Statement 2: Trading bond investments are reported at fair value. A. Only statement 1 is true B. Only statement 2 is true C. Both statements are true D. Both statements are false
36. Subsequent to their initial recognition, which financial assets with quoted market prices in an active market are measured at fair value? Financial assets Financial Assets with at amortized cost a. b. C. d. Yes Yes No No fair values through profit or loss No Yes Yes No
All financial assets are initially measured at fair value plus transaction costs, except A. Amortized cost C.None of these C. Fair value through profit and loss D. Fair value through OCI
3. Transaction costs incurred the effective interest rate to be used for amortization of an investment in debt security accounted for as A. Increase; Fair value through profit or loss Decrease; Amortized cost C. Increase; Fair value through other comprehensive income D. Does not affect; Amortized cost В.
1. If a Revaluation of an asset is done for the first time and there is a revaluation gain, this should be shown in a. Other Comprehensive Income as a Negative figure b. Other Comprehensive Income as a Positive figure c. The Statement of Profit and Loss Account as an Expense d. The Statement of Profit and Loss as Income
When an intangible asset is amortized: OA. stockholders' equity decreases. OB. net assets decrease. C. net income decreases. D. all of the above are correct.
The fair value is the value of an asset as it appears on the balance sheet. True False
2. Statement 1: Financial assets held for trading shall be measured at fair value through profit or loss. Statement 2: Unrealized gains and losses on trading investments are reported in Retained Earnings. a. Only statement 1 is true b. Only statement 2 is true c. Both statements are true d. Both statements are false
(Multiple Choice Question) An impairment loss is recorded when capital asset's 1. net book value is higher than the amount it could likely be sold for 2. market value is higher than its accumulated amortization 3. market value is higher than its net book value 4. net book value is higher than its accumulated amortization
TRUE OR FALSE 7.If the financial asset is held for trading or if the financial asset is measured at fair value through profit or loss, transaction costs are expensed outright. 8.Significant influence is the power to participate in the financial and operating policy decisions of the investee entity but not control or joint control over those policies. 9.Amortization of discount decreases the accounts Investment in Bonds and Interest Income. 10.Amortization of premium increases the accounts Investment in Bonds and Interest Income.
Which of the following is correct about subsequent measurement of financial asset at fair value? a. the financial asset shall be measured at fair value if the business model is not to collect contractual cash flows on specified dates and the contractual cash flow ae not solely payment of principal and interest. b. An entity may designate a finacncial asset as measured at fair value through profit or loss even if the financial asset satisfies the amortized cost measurement. c. both are correct d. both are incorrect