I need the answer as soon as possible 70. Those debt investment acquired that is not held for collecting contractual cash flows are reportedat *O Amortized cost of the carrying valuePresent value of net cash flows from the debt investmentO Fair value of the instrumentNet realizable value when sold

solution concept whenever there is investment in financial assets made , the investment can be…

70. Those debt investment acquired that is not held for collecting contractual cash flows are reportec at * Amortized cost of the carrying value O Present value of net cash flows from the debt investment O Fair value of the instrument

70. Those debt investment acquired that is not held for collecting contractual cash flows are reportec at * Amortized cost of the carrying value O Present value of net cash flows from the debt investment O Fair value of the instrument

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7DQ

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2. Which of the following correctly matches the classification of the debt investment with its initial measurement? Classification Initial measurement A. Fair value through other comprehensive income B. Amortized cost C. Fair value through profit or loss Fair value Fair value plus transaction costs Fair value minus transaction costs D. None of the above
14 Debt investments with an objective of collecting contractual cash flows is classified as: Group of answer choices Through profit or loss only Through other comprehensive income only Through other comprehensive income or at amortized cost, depending on circumstances. At amortized cost only
Debt investment are initially recorded at: Cost Cost plus accrued interest Fair value None of the above
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Interest revenue for debt investments at fair value through other comprehensive income is computed based on the instruments’ a. face value using the effective interest rate. b. face value using the nominal interest rate. c. carrying amount using the effective interest rate. d. carrying amount using the nominal interest rate.
Financial liabilities that are classified as amortized cost are subsequently measured at A. Partly at profit or loss and partly at other comprehensive income depending on the risk. B. Fair value with changes in value recognized in other comprehensive income. (FVPL) C. Fair value which changes in value recognized in profit or loss. (held for trading) D. The present value of the remaining cash flows of the instrument discounted at the original effective interest rate.
An unrealized holding gain or loss on a trading debt investment is the difference between the investments Select one: a. fair value and original cost. b. fair value and amortized cost. c. face value and amortized cost. d. face value and original cost.
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The realized gain (loss) on sale of debt investments with an objective of collecting contractual cash flows and to sell when circumstances warrants is the difference of the net selling price and the fair value of the bonds. Group of answer choices False True
1. Which of the following may be measured subsequently at amortized cost?a. None of theseb. A non-derivative equity instrumentc. A derivalived. A non-derivative debt instrument 2. An investment in equity instrument may not be classified as a financial asset subsequently measured ata. Fair value through other comprehensive incomeb. Amortized costc. Fair value through proft or lossd. None of these 3. Significant influence isa. The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.b. The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.c. The power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.d. Deemed to exist when the investor is exposed, or has rights, to variable returns from its involvement with the…
question 53
Debt Instrument investment can be classified under the following, Except? FAFVPL At Amortized Cost FAFVOCI Held to Maturity