1. Which of the following pertains to the ability to participate in the financial and operating policy decisions of the investee?Single choice.

(1 Point)

a. Significant influence

b. Joint control

c. Sole control

d. Undue influence

2.) On January 1, 2020, Shells Company bought a long-term investment P5,000,000 face amount of Petro Company's 8% bonds at its market value of P4,562,000. It satisfied the criteria to be classified as Debt Investment measured at Amortized Cost. The bonds will be payable by Petro on January 1, 2025 and interest is payable annually starting December 31, 2020. Effective interest rate is 10%. What will be the carrying amount of the bonds on DECEMBER 31, 2021?Single choice.

(1.5 Points)

a. 4,562,000

b. 4,680,020

c. 4,662,000

d. 4,618,200

3.) Under what condition can an entity classify financial asset that meets the amortized cost or FVOCI criteria at FVPL?Single choice.

(1 Point)

a. Where the business model to recognize the asset to FVPL is met

b. Where doing so eliminates or reduces an accounting mismatch

c. Where the instrument is held for trading

d. Where the financial asset passes the contractual cash flows characteristics set

4)Goodwill arising from an investment associate is:Single choice.

(1 Point)

a. Separately recognized as an intangible asset, subject to impairment

b. Included in the carrying amount of the investment and not amortized

c. Charged immediately to profit or loss

d. None of the above

5) In which of the following class of debt investments is there NO amortization of premium or discount?Single choice.

(1 Point)

a. FVPL

b. FVOCI

c. Amortized Cost

d. FVPL and FVOCI

6)The following statements are provided to you: Statement 1: Upstream transactions are transactions from an associate to the investor. Statement 2: If an entity's share of losses of an associate equals or exceeds its interest in the associate, the entity discontinues recognizing its share of further losses.Single choice.

(1 Point)

a. Statement 1 is true ; Statement 2 is false.

b. Statement 1 is false ; Statement 2 is true.

c. Both statements are true.

d. Both statements are false.