Accounting Questions (1-3)

Question 1

Refer to Question 1 ACCT.png

Options a)

• 1,2,4
• 1,2
• 1,3
• 1,2,3,4
• 2,4
• 3,4

Options b)

• 1,2
• 2,4
• 1,2,4
• 1,2,3,4
• 1,3
• 3,4

Current Attempt in Progress A review of the financial statements of private and publicly accountable enterprises may result in finding the following measurement approaches used for their non-strategic investments: (1) cost/amortized cost. (2) FV-NI (or FVTPL). (3) FV-OCI (with recycling), and (4) FV-OCI (without recycling). Indicate by number (1, 2, 3. or 4) which methods are permitted for enterprises applying (a) ASPE [b) IFRSThe standard setters identify three approaches to accounting for the impairment of financial asset investments: an incurred loss model, an expected loss model, and a fair value model. Identify which models are required to be used by enterprises applying (e) ASPE, and (b) IFRS. (a) ASPE (b) IFRSPronghorn Corporation purchased a 20% interest in Moss Inc for $240. This investment gave Pronghorn significant influence over Moss. During the year, Moss earned net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 20% of Moss's net carrying amount when it was acquired. Prepare Pronghorn's journal entries related to this investment using the equity method. Pronghorn applies IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit [To record investment purchase) (To record investment income) (To record collection of dividend)