All of the following statements regarding available-for-sale debt securities are true, except for a. premiums and discounts are amortized b. interest revenue may be debited at the time of acquisition c. the securities will be valued using the lower of cost or market method d. realized gain or loss is the difference between the amortized cost of the bonds and the proceeds from their sale

1. Investments in debt securities are classified for accounting purposes as: A. Financial asset at amortized cost (AC), fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL) B. Financial asset at amortized cost (AC) or fair value through other comprehensive income (FVOCI) only C. Trading, Available-for-Sale (AFS) or Held-to-Maturity (HTM) D. Available-for-Sale (AFS) or Held-to-Maturity (HTM) only

In an equity swap where a liability is settled through the issuance of equity securities A.no gain or loss is recognized B.gains are recognized as Share Premium, losses are expensed. C.gain or loss is recognized as the difference between the measurement    amount of the equity securities issued and the carrying amount of the liability derecognized D.any apparent gain or loss is recognized in equity as an addition to share premium

20.Investments in debt securities are classified into the following categories according to management's intention: Select one: a."To hold until maturity", "available for sale" and "to trade". b. "To retain until maturity" and "to negotiate" c. All are classified as "to hold until maturity". d. "To retain until maturity" and "Available for sale".

17. When a debt investment at FVOCI is reclassified to FVPL, an entity willa. Remeasure the investment to the original cost and eliminate the cumulative unrealized gain or loss in OCI.b. Transfer the cumulative unrealized gain or loss to retained earningsc. The cumulative gain or loss previously recognized in OCI is reclassified to profit or loss.d. The effective rate at the date of reclassification shall be the basis for interest income to be recognized in subsequent periods.

Among the following five types of investments: Held-to-maturity, debt investment Trading, debt investment Available-for-sale, debt investment Trading, equity investment Available-for-sale, equity investment unrealized holding gains or losses are recognized in income for securities classified as (Enter 1, 2, 3, or 4 that represents the correct answer): c, e a, b, c b, d b, c, d, e

Indicate how unrealized holding gains and losses shouldbe reported for debt investments classified as trading,available-for-sale, and held-to-maturity.

The debt component of convertible bonds issued using IFRS is the a. present value of the future cash flows at the market interest rate b. present value of the future cash flows at the stated interest rate c. market value of similar bonds without a conversion feature d. same as the calculation for GAAP

22.   Investments in debt securities made to generate trading gains are classified as:   Multiple Choice   trading securities.   available-for-sale securities.   minority securities.   held to maturity securities.

When a company uses the the effective-interest method to amortize a bond discount amortization, the interest expense is equal to   a)  the market rate multiplied by the beginning-of-period carrying amount of the bonds.   b)  the market rate of interest multiplied by the face value of the bonds.   c)  the stated rate multiplied by the beginning-of-period carrying amount of the bonds.   d)  the stated (nominal) rate of interest multiplied by the face value of the bonds.