1. Investing Ltd acquired 20 000 shares for N$12,00 per share on 1 June 2021. Transaction costs amounted to N$2 500. The fair value of these shares as at 31 December 2021 was N$11,00 per share. Calculate the gain or loss recognised on these shares as at 31 December 2021. Loss of 22,500 A. B. Gain of 22,500 C. Gain of 20,000 D. Loss of 20,000 2. Investing Ltd acquired 20 000 shares for N$12,00 per share on 1 June 2021. Transaction costs amounted to N$2 500. The fair value of these shares as at 31 December 2021 was N$11,00 per share. Investing Ltd acquired these shares for speculative purposes. The investment is initially recognized at amortised cost. True or false: 4. Prepaid expenses are financial assets. True or false? 5. Transactions costs are expensed in the case of financial assets and liabilities classified as subsequently measured at fair value through profit and loss. True or false? 6 An onerous contract is: a)A contract between parties creating an enforceable obligation towards one another. b)A contract whose terms are stated expressly and a legally enforceable obligation exists amongst the parties to the contract. c) A contract in which the unavoidable costs of meeting the obligations under the contract exceeds the economic benefit expected to be derived from it. d)A contract whose obligations are legally and constructively enforceable. 7. A contingent asset is: a) A resource controlled by the entity as a result of a past event with the probability of economic inflow. b)A resource that arises as a result of a past event whose existence is only confirmed by the occurrence or non-occurrence of an uncertain future event not within the control of the entity. c) An asset controlled by the entity with definite inflow of resources. d)All of the above od A present obligation as a result of past events which is not recognized is: a) A provision. b) A contingent liability. c) Not probable that an outflow of resources will be required to be settled or that the amount of the obligation cannot be measured reliably. d) (b) and (c). 9. a A constructive obligation is: a) An obligation which arises as a result of past practice, and valid expectations created. b) An obligation legally enforceable by a contract or legislation. c) An obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of an uncertain future event not within the control of the entity. d) All of the above. 10. Provisions should be recognized for future operating losses. True or False