Question 1

"Other comprehensive income" does not include

Accepted Answer

A)  revaluations of property, plant and equipment. 
B)  certain translation gains and losses on foreign currency. 
C)  realized gains and losses on held for trading investments. 
D)  unrealized gains and losses on held for trading investments. 
A)  revaluations of property, plant and equipment. 
B)  certain translation gains and losses on foreign currency. 
C)  realized gains and losses on held for trading investments. 
D)  unrealized gains and losses on held for trading investments.

Question 2

All of the following statements concerning strategic investments are true, except

Accepted Answer

A)  they include held for trading investments. 
B)  they are purchased for the strategic purpose of influencing relationships between companies. 
C)  they are generally long-term investments. 
D)  they are equity securities. 
A)  they include held for trading investments. 
B)  they are purchased for the strategic purpose of influencing relationships between companies. 
C)  they are generally long-term investments. 
D)  they are equity securities.

Question 3

When an investor reporting under IFRS owns more than 20% of the common shares of a corporation, it is generally presumed that the investor

Accepted Answer

A)  has insignificant influence on the investee and that the cost method should be used to account for the investment. 
B)  should use the fair value through profit or loss model to account for the investment. 
C)  will prepare consolidated financial statements. 
D)  has significant influence on the investee and that the equity method should be used to account for the investment. 
A)  has insignificant influence on the investee and that the cost method should be used to account for the investment. 
B)  should use the fair value through profit or loss model to account for the investment. 
C)  will prepare consolidated financial statements. 
D)  has significant influence on the investee and that the equity method should be used to account for the investment.

Question 4

Platinum Corporation reported the following transactions relating to its held for trading investments. Platinum Corporation follows IFRS and has elected to report held for trading investments under the fair value through profit and loss model.Jan 1 Purchased 1,200 Silver Corporation shares for $20 cash each.Jun 1 Received cash dividends of $0.50 per share on Silver Corporation shares.Sep 15 Sold 600 shares of Silver Corporation for $13,800 ($23 each).Dec 1 Received cash dividends of $0.75 per share on Silver Corporation shares.Dec 31 Silver shares were trading at $27 each.Instructions
a. Record the above transactions and events.
b. Indicate where any revenues and gains or losses (realized or unrealized) would appear in the financial statements.

Accepted Answer

@#IMG-DLM& (b) Since the fair value through profit

Question 5

Short-term investments in bonds are accounted for using the

Accepted Answer

A)  equity method. 
B)  short-term method. 
C)  fair value through profit or loss model. 
D)  amortized cost model. 
A)  equity method. 
B)  short-term method. 
C)  fair value through profit or loss model. 
D)  amortized cost model.

Question 6

When investing excess cash for short periods of time, corporations generally invest in any of the following, except

Accepted Answer

A)  money-market funds. 
B)  bankers' acceptances. 
C)  equity securities. 
D)  treasury bills. 
A)  money-market funds. 
B)  bankers' acceptances. 
C)  equity securities. 
D)  treasury bills.

Question 7

Which of the following is the correct match concerning an investor's influence on the operations and financial affairs of an investee?

Accepted Answer

The answer of Which of the following is the correct...

Question 8

If the equity method is used to account for an investment in common shares

Accepted Answer

A)  it is presumed that the investor has no significant influence on the investee. 
B)  net income of the investee are ignored by the investor. 
C)  net income of the investee are recorded as realized gains, but dividends received are credited to the investment account. 
D)  the investment account may be at times greater than the acquisition cost. 
A)  it is presumed that the investor has no significant influence on the investee. 
B)  net income of the investee are ignored by the investor. 
C)  net income of the investee are recorded as realized gains, but dividends received are credited to the investment account. 
D)  the investment account may be at times greater than the acquisition cost.

Question 9

Under the equity method, the Investment in Associates account is credited when the

Accepted Answer

A)  associate reports net income. 
B)  associate reports a net loss. 
C)  associate is originally acquired. 
D)  both when the investee reports net income and when the investment is originally acquired. 
A)  associate reports net income. 
B)  associate reports a net loss. 
C)  associate is originally acquired. 
D)  both when the investee reports net income and when the investment is originally acquired.

Question 10

Unless there is evidence to the contrary, an investor owning at least 20% of the shares of an investee is assumed to have significant influence.

Accepted Answer

A) True 
 B)False

"Other comprehensive income" does not include

All of the following statements concerning strategic investments are true, except

When an investor reporting under IFRS owns more than 20% of the common shares of a corporation, it is generally presumed that the investor

Short-term investments in bonds are accounted for using the

When investing excess cash for short periods of time, corporations generally invest in any of the following, except

Which of the following is the correct match concerning an investor's influence on the operations and financial affairs of an investee?

If the equity method is used to account for an investment in common shares

Under the equity method, the Investment in Associates account is credited when the

Unless there is evidence to the contrary, an investor owning at least 20% of the shares of an investee is assumed to have significant influence.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Statement of Cash Flows

Performance Measurement

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Exam 12: Reporting and Analyzing Investments

"Other comprehensive income" does not include

All of the following statements concerning strategic investments are true, except

When an investor reporting under IFRS owns more than 20% of the common shares of a corporation, it is generally presumed that the investor

Short-term investments in bonds are accounted for using the

When investing excess cash for short periods of time, corporations generally invest in any of the following, except

Which of the following is the correct match concerning an investor's influence on the operations and financial affairs of an investee?

If the equity method is used to account for an investment in common shares

Under the equity method, the Investment in Associates account is credited when the

Unless there is evidence to the contrary, an investor owning at least 20% of the shares of an investee is assumed to have significant influence.

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Statement of Cash Flows

Performance Measurement

Filters