9. On January 1, 2020, HIBISCUS Company purchased 4,000 of P1,000 face value, 10% bonds of IXORA Company for P4,270,600. The bonds will mature on January 1, 2025 and pay interest semi-annually on January 1 and July 1. Bonds effective interest rate is 8%. HIBISCUS has a business model of collecting all the contractural cash flows related to the instrument. How much should HIBISCUS report as interest income on the bonds? *

Drag and drop the items to complete the diagram of Qualitative Characteristics of accounting information. Free from Error Completeness FAITHFUL REPRESENTATION Verifiability Ingredients of fundamental qualities Materiality Neutrality Understanda- bility Predictive Value Enhancing Qualities Comparability Confirmatory Value Fundamental Qualities Timeliness RELEVANCE

Explain the efficiency perspective and the opportunistic perspective of Positive Accounting Theory. Why is one considered to be ex post and the other ex-ante?

Describe accounting and presentation for research and development and similar costs.

Define solvency and profitability. How are they alike?

Describe briefly the following characteristics of useful accounting information.  Comparability (consistency).  Neutrality.