Specified investment business income does not include... Multiple Choice Dividends Rents Interest G Capital gains

Q: When calculating the after-tax weighted average cost of capital, which of the following has to be…

A: Weighted average cost of capital: It implies to a rate at which the average return is expected to be…

Q: Financial market facilities the price discovery of the trade financial assets.  A. True  B. False

A: The term "financial markets" refers to any marketplace where securities are traded. Financial…

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: 1.222Weighted Average Cost of Capital (WACC) and Risk Adjusted Discount Rate (RADR)are often used…

A: 1. Weighted Average Cost of Capital (WACC):Definition: WACC is the average rate of return that…

Q: Identify keywords if it is; Deposit Fund Bond Stock Property 1. Collateral 2. Shareholder 3.…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: The market which deals with short term financial assets Select one: a. Commercial Market b. Primary…

A: Financial assets are a kind of liquid asset that generates its value from a contract that provides…

Q: What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust…

A: Unit trust investments invest in a range of individual securities. There will be a systematic risk…

Q: Gain contingencies are usually recognized in the income statement when: a. realized…

A: Introduction: Contingency relates to the actual situation in which there is a chance of making or…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: The realized gain (loss) on sale of debt investments with an objective of collecting contractual…

A: Realized Gain: When an investment is sold for a greater price than it was originally acquired, this…

Q: 16. When the market value of a company's available-for-sale investments is lower than its cost, the…

A: When the market value of a company's available-for-sale investments is lower than its cost, the…

Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…

A: Financial assets classified as trading securities can be defined as the assets which can be realized…

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth…

A: Interest Income: It is the main source of Income for banks and financial institution, interest…

Q: a) Prepare the journal entry to record Sarasota's investment in Washi. Assume that any unexplained…

A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Transaction costs are capitalized when acquiring investment in equity or debt securities, except…

A: Transaction costs are required costs incurred while sale or purchase of equity or debt security. In…

Q: Unrealized holding gain/loss which are taken to profit or loss are from securities that are…

A: Answer:-  Unrealized gain meaning:- A notional profit that exists on paper as a consequence of an…

Q: The most important non-cash item is a) Debt interest rate b) Income tax c) Dividend d) Depreciation

A: Answer

Q: Transaction costs incurred the effective interest rate to be used for amortization of an investment…

A: Costs incurred during buying and selling any good or a service are generally referred to as…

Q: The most difficult component cost of financing to measure is the cost of ________   a Preferred…

A: The component cost of financing for debt is interest.

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c.…

A: Sources of capital can be long-term and short-term. Those sources which have a repayment period of…

Q: The following terms were introduced in this chapter:   Strategic investments Non-strategic…

A: Investments are the distribution of resources, usually monetary, with the goal of producing revenue…

Q: Which of the following reclassifications of financial assets is permitted under PFRS 9? a.…

A: Financial Assets- Financial Assets are investment assets or non-physical assets whose value is…

Q: On January 1, 2023, Sheffield Corporation purchased 20% of the common shares of Martz Limited for…

A: Investment refers to the asset which is acquired by the investor for the motive of generating income…

Q: The Equity Method of accounting for investments:     a)  Requires the investment asset to…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

Q: ontributed capital does not include    a. Preference shares b. Share premium on preference shares c.…

A: Solution: Contributed capital does not include "Capital accumulated by retention of earnings".

Q: Which of the following are examples of permanent differences? Select one or more: a. Non-taxable…

A: Solution: Permanent difference are the differences in taxable and accounting income which will not…

Q: How does the fair value model differ from the revaluation model?

A: The difference between fair value and revaluation method arises when there is gain in the value of…

Q: True or False, pls explain why 10) Appropriated retained earnings are for dividend payments True…

A: Appropriated retained earnings implies that portion of retained earnings that has been set aside by…

Q: For fi nancial assets classifi ed as held to maturity, how are unrealized gains and losses refl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: Which of the following results in an increase in the Equity in the Investee Income acct. when…

A: Equity of the investor means the amount that is invested by the investor in the company. Equity…

Q: Debenture holders receive: i. fixed interest ii. dividend iii. iii. profit A. i only B. ii only C.…

A: Long-term borrowing is the source of raising funds where the corporation borrows money from outside…

Q: These investments are initially recorded at purchase price plus transaction costs

A: These investments are initially recorded at purchase price plus transaction costs Answer - Financial…

Q: Appropriation for accumulated profits, if reflected in separate account, shall be shown as a.…

A: Solution: Appropriation for accumulated profits, if reflected in separate account, shall be shown as…