1)

Consider the following statements:

Statement 1. Equity generally has a xed maturity.

Statement 2. Debt does not have a maturity.

Which is/are correct?

Select one:

a. Both statements are correct

b. Only statement 2 is correct

c. Neither statement is correct

d. Only statement 1 is correct

2)

Using the fair value through net income method, an excess in value over the investment cost, prior to sale of that investment, should be recorded as:

Select one:

a. Debit to Unrealized Gain on Fair Value Adjustment, Credit Valuation Allowance for Fair Value Adjustment

b. Debit to Valuation Allowance for Fair Value Adjustment, Credit to Gain on Fair Value Adjustment

c. Debit to Valuation Allowance for Fair Value Adjustment, Credit to Unrealized Gain on Fair Value Adjustment

d. Debit to Gain on Fair Value Adjustment, Credit Valuation Allowance for Fair Value Adjustment

3)

Which of the following debt instruments would be reported on the balance sheet as a long-term investment?

Select one:

a. A debt instrument that matures in 9 months and the investor intends to hold to maturity for interest revenue.

b. A debt instrument that matures in 6 months but the investor intends to sell at a gain within 3 months.

c. A debt instrument that matures in 5 years and the investor intends to hold to maturity for interest revenue.

d. A debt instrument that matures in 5 years but the investor intends to sell at a gain within 1 year.

4)

Accounting for short-term debt (bonds) under ASPE and IFRS is:

Select one:

a. Directly opposite

b. Very different

c. Has a lot of differences

d. Exactly the same