PROBLEM 1: MULTIPLE CHOICE 1. During the period, an entity acquires an investment. The entity has a "hold to collect and sell" business model. The investment should be classified as a. investment measured at fair value through other comprehensive income. b. investment measured at amortized cost. investment measured at fair value through profit or loss. C. d. any of these 2. If an entity's business model's objective is to hold investments in order to collect contractual cash flows that are solebu payments for principal and interests, then investments should be classified as a. investment measured at fair value through other comprehensive income. b. investment measured at amortized cost. investment measured at fair value through profit or loss. of these C. d. any 3. A permanent decline in the fair value of an investment in equity securities that the entity made an irrevocable election at initial recognition to subsequently measure at FVOCI is recognized in a. profit or loss. b. other comprehensive income. c. either a or b d. not recognized

PROBLEM 1: MULTIPLE CHOICE 1. During the period, an entity acquires an investment. The entity has a "hold to collect and sell" business model. The investment should be classified as a. investment measured at fair value through other comprehensive income. b. investment measured at amortized cost. investment measured at fair value through profit or loss. C. d. any of these 2. If an entity's business model's objective is to hold investments in order to collect contractual cash flows that are solebu payments for principal and interests, then investments should be classified as a. investment measured at fair value through other comprehensive income. b. investment measured at amortized cost. investment measured at fair value through profit or loss. of these C. d. any 3. A permanent decline in the fair value of an investment in equity securities that the entity made an irrevocable election at initial recognition to subsequently measure at FVOCI is recognized in a. profit or loss. b. other comprehensive income. c. either a or b d. not recognized

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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