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1. Unrealized gains and losses for available for sale securities or FVTOCI are included in equity b. income C. income for unrealized gains and included in equity for unrealized losses d. income for unrealized losses and included in equity for unrealized gains 2. Shares of stocks in other corporations held for investment, valued at cost but could not be quickly sold other than at a sacrifice price should be classified on the balance sheet as a a. Contra item under capital b. Long-term investment C. Deferred charge d. Current asset 3. Under the equity method, if the investor's share of losses of associate equals or exceeds investment 1. Investment is reported at nil. 2. Additional losses are provided to the extent that the investor has incurred obligations or made payments on associate's obligations that it has guaranteed or otherwise committed (advances for and in behalf of associate) a. I only b. Neither I or II C. Both I and II d. II only 4. The following statements relate to the depreciation of property, plant and equipment. Which statement is incorrect? . The useful life of an item of property, plant and equipment should be reviewed periodically and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted. b. The sum of units method results in a charge based on the expected use or output of the asset. C. The change in the expected pattern of consumption of economic benefits of a depreciation asset should be accounted for as a change in accounting policy and the effect is included in retained earnings. d. The change in the expected pattern of consumption of economic benefits of a depreciable asset should be accounted for as a change in accounting estimate and the effect is included in the determination of income or loss in the period of change and future periods. 5. Which statement is true concerning the revision of useful life of an asset and change in the depreciation method? The useful life of an item of property, plant and equipment should be reviewed periodically, and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted. When a change in depreciation method is necessary to reflect the new pattern of economic benefits, the change should be accounted for as a change in accounting estimate and the depreciation charge for the current and future periods should be adjusted. a. Il only. b. I only. Neither I nor II. d. I and