1. When cash from an existing sinking fund account is used to purchase securities,

Group of answer choices

the total sinking fund account is not affected.

the total sinking fund account is reduced.

the total sinking fund account is increased.

the securities acquired is to be accounted for separately as FVOCI or FVPL.

2. Which of the following is not considered in the computation of the gain (loss) on the settlement of life insurance?

Group of answer choices

The unexpired portion of the insurance premiums paid at the time of death.

The dividend received related to the insurance policy.

The cash surrender value at the time of death.

The proceeds from the life insurance.

3. When an entity acquires sufficient shares to exercise significant influence over an investee,

Group of answer choices

any differences between the fair value and cost of depreciable assets are considered in the determination and recognition of the share in the profit of the investee.

any goodwill arising from the said transaction is accounted for as a separate asset account in the financial statements.

the entity is still prohibited from applying the equity method if the percentage of ownership is below 20%.

the entity recognizes a share only in the profits and not on the other comprehensive income of the investee.

4. If an entity wishes to accumulate an amount at the end of a certain period by contributing a lump sum amount, the entity is expected to use ___________ for its computation.

Group of answer choices

present value factor of 1

future value factor of ordinary annuity

future value factor of 1

future value factor of annuity due