Please answer this hehe
1. Which of the following statements regarding trading securities are correct? They are held with the intention of being sold in a short period of time. Unrealized holding gains and losses are reported in profit or loss III. Any discount or premium on debt securities is not amortized. IV. Gain on sale is the excess of the net selling price over the cost of the securities sold. A. All of the statements are correct. B. I, II, and IV C. II, III, and IV D. I, II, and Ill 2. Ryan Corporation purchased bonds of Eric Company two months after the interest date, at a premium. What was the amount paid by Ryan Corporation to the seller of the bonds at purchase date? A. Face value of the bonds B. Face value of the bonds plus accrued interest C. An amount exceeding the face value of the bonds plus accrued interest D. An amount less than the face value of the bonds plus accrued interest 3. Under IFRS 9, investments in debt securities that meet the business model test of collecting contractual cash flows, and for which the enterprise does not exercise its option to measure at fair value shall be initially recognized at A. purchase price. B. fair value. C. purchase price plus transaction costs. D. purchase price plus transaction costs plus accrued interest. 4. When debt investments are measured at amortized cost, what is the effect of the amortization of premium or discount on the investment's amortized cost? Amortization of Premium Amortization of Discount A. Increase Decrease Increase Increase Decrease Increase Decrease Decrease 5. Under IFRS 9, which is a correct statement regarding reclassification of investments? A. A reclassification may be made as a result of a change in the management's intention for holding the financial asset. B. A reclassification is necessary if there is temporary disappearance of a particular market for the instrument C. A reclassification is allowed if there is a transfer of assets between existing business models. D. If a financial services entity decides to shut down its retail mortgage business and is now actively trading its portfolio of debt securities, reclassification from amortized cost to fair value is appropriate6. Depending in the business model for managing financial assets, an entity shall classify financial assets subsequent to initial recognition at A. Fair value through profit or loss B. Amortized cost C. Fair value through other comprehensive income D. All of these are used in measuring financial assets 7. A debt instrument is measured at amortized cost By irrevocable election When det investment is managed and evaluated on a document risk-management strategy. When debt investment is held for trading. When the business model is to collect contractual cash flows that are solely payments of principal and interest. 8. Which is not a category of financial assets? A. Financial assets at fair value through profit or loss B. Financial assets at fair value through other comprehensive income C. Financial assets at amortized cost D. Financial assets held for sale 9. It is an entity over which the investor has significant influence A. Associate Investee Venture capital organization D. Mutual fund 10. Which statement bet describes significant influence? A. The holding of a significant portion of the share capital in another entity. The contractually agreed sharing control over an economic entity. The power to participate in the financial and operating policy decisions of an entity. D. The mutual sharing in the risks and benefits of a combined entity. 11. When an entity holds between 20% and 50% of the voting power of an investee A. The investor must use the equity method. B. The investor should use the equity method unless circumstances indicate that it is unable to exercise significant influence over the investee. C. The investor must use the cost method D. The investor must use the fair value method. 12. When bonds are acquired and classified as financial asset at amortized cost, the bond investments are classified as A. Temporary investment B. Current asset C. Noncurrent investment D. Partly current and partly noncurrent investments 13. Bonds premium and discount is amortized over the life of the bonds. On the life bondholder, the life of the binds is A. From the original life of the bond B. From acquisition date to maturity date C. For a maximum of five years. D. For a maximum of ten years14. Which amortization method of bond premium and discount is applicable to serial bonds? A. Straight-line method B. Effective interest method C. Bond outstanding balance method D. Any method will do 15. Which financial asset is not exempted from reclassification? A. Equity investment held for trading B. Equity investment measured at FVOCI by irrevocable election C. Debt investment from FVPL to amortized cost D. All of the above
