Question 20 Under First-In, First-Out (FIFO), it is assumed that inventories that were purchased first are sold first, and therefore unsold inventories at the end of the period are those first purchased or produced. True O False Question 21 Alpha Corporation accounts for its investment in the ordinary shares of Charlie Company under the equity method. Alpha Corporation should ordinarily record a cash dividend received from Charlie as o share premium an addition to the carrying value of the investment O a reduction of the carrying value of the investment O dividend income Question 22 If the financial asset is held for trading or if the financial asset is measured at fair value through profit or loss, transaction costs directly attributable to the acquisition shall be O Deferred and amortized over a reasonable period. Included as component of other comprehensive income. o Capitalized as cost of the financial asset. O Expensed immediately when incurred. Question 23 The fair value option allows a company to Record income when the fair value of its investment increases. O Value its debt investments at fair value in some years but not other years. Report most financial instruments at fair value by recording gains and losses as a separate component of shareholders' equity O All of these answer choices are true of the fair value option Question 24 Unrealized holding gains or losses on financial assets measured at fair value through profit or loss are reported in O equity O other comprehensive income accumulated other comprehensive income. o income statement