Equity Investment classified at Fair Through Other Comprehensive Income (choose which of the following is true) Securities not held for trading for which the enterprise elects to recognize change in fair value through other comprehensive income Initially measured at Fair value minus transaction costs Measured after initial recognition at Cost Which dividends are taken to Other Comprehensive Income

Equity Investment classified at Fair Through Other Comprehensive Income (choose which of the following is true) Securities not held for trading for which the enterprise elects to recognize change in fair value through other comprehensive income Initially measured at Fair value minus transaction costs Measured after initial recognition at Cost Which dividends are taken to Other Comprehensive Income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Under the fair value option for debt investment, entities report all changes in fair value in a.Equity b.Other comprehensive income c.Income or other comprehensive income d.Income
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Why are unrealized gains and losses from available-for-sale securities not reported as a component of net income? Select one: a. Because goodwill exists that must be separately accounted for b. Because the investor has the ability to exercise significant influence over the investee c. Because consolidated financial statements must be prepared d. Because large swings in market value over which management has no control may distort current period performance as measured by net income
Long-term investments that involve the purchase of a significant portion of the stock of another company may be held for a strategic purpose, such as O a. the receipt of dividends O b. the receipt of interest revenue O c. the gains from the increase in market value O d. expansion into new markets
Changes in the fair value of held to maturity securities are: A. not recognized. B. recognized on the income statement and as part of stockholders' equity. C. reported as part of stockholders' equity. D. recognized on the income statement.
For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss-OCI is * A. its unrealized gain or loss reported as a component of OCI for the period B. Its amortized cost C. its initial cost D. its unrealized gain or loss reported under profit or loss for the period A gain or loss arising on the initial recognition of biological assets and from a change in the fair value less costs to sell of a biological asset shall be included in: * A. Profit or loss for the period B. Other comprehensive income C. A separate revaluation reserve D. Either in the profit or loss or the other comprehensive income for the period The following items are generally classified as plant assets, except: a. Improvements to leased facilities b. Property held for future plant sites c.…
is to decide whether the firm should distribute all profits or retain them or distribute a portion and retain the balance O a. Investment Decision Ob. Financing Decision O c.Dividend Decision Od. Liquidity Decision.
Please describe how to account for market value and unrealized gains and losses for each of these investment categories: held-to-maturity, trading, and available-for-sale.
Case Study: Accounting Assets and Liabilities Introduction: In the realm of accounting, understanding and managing assets and liabilities are fundamental for assessing the financial health and stability of an organization. This case study delves into the accounting practices of XYZ Corporation, a manufacturing company, to illustrate the significance of proper asset and liability management. XYZ Corporation's Asset Management: XYZ Corporation, in its commitment to effective asset management, carefully categorizes its assets into current and non-current. Current assets, such as cash, accounts receivable, and inventory, are monitored closely for liquidity and short-term financial health. Non-current assets, including property, plant, and equipment, are assessed for their long-term value and depreciation. Liability Management and Debt Ratio: To ensure a healthy balance between assets and liabilities, XYZ Corporation meticulously manages its liabilities. Current liabilities, like accounts…