1.

Spa Ltd. has nine divisions. Although the B division had very low profits, it was determined to be a reportable segment on the basis of its total revenue of $1,600,000. What can be inferred based on this information?

The combined assets of the reportable operating segments total less than $16.000.000,

The combined revenue of the reportable operating segments total greater than $16.000.00.

The combined revenue of the reportable operating segments total less than $16.000.000.

The greater of 10% of total profit and 10% of total loss is less than $1,600,000.

2. Caledonia Ltd. holds an equity investment that is reported at fair value. The fair value increased over the 2010 fiscal year and a gain was reported under the category of other comprehensive income. What is the classification of this investment?

Loans and receivables

Available-for-sale financial assets

Held-for-trading financial assets

Held-to-maturity investments

3.

Goodwill Inc. is a not-for-profit organization that was formed on January 1, 2020. Goodwill has a December 31 year end. It has an accounting policy of capitalizing and amortizing its capital assets. On April 1, 2020,Goodwill Inc purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from an unrestricted contribution of $8,000.

What would be the balance in the Capital Fund on December 31, 2020?

$8,000

$6.500

$6,000

None of these

4.

Which sections of the cash flow statement are affected by the difference in the direct and indirect approaches of presenting a cash flow statement?

Investing activities section

Operating activities section

Financing activities section

None of these