FinAcc&Rep

Which of the following is INCORRECT about bonds sold at a discount?

• The balance of the bonds payable account increases each year.

• Unrealized loss from derivative contracts designated as fair value hedge.

• At fair value or nominal account plus directly attributable expenditures.

• Financial assets measured at fair value

Which of the following should NOT be included in the computation of other comprehensive income?

• At fair value or nominal account plus directly attributable expenditures.

• Financial assets measured at fair value

• Unrealized loss from derivative contracts designated as fair value hedge.

• Amortized cost using the effective interest method of amortization

Which of the following assets must be tested at least annually for impairment?

• Renewable broadcast license

• Financial assets measured at fair value

• Unrealized loss from derivative contracts designated as fair value hedge.

• Amortized cost using the effective interest method of amortization

What is the initial measurement of an intangible asset acquired through a government grant?

• Amortized cost using the effective interest method of amortization

• At fair value or nominal account plus directly attributable expenditures.

• Financial assets measured at fair value

• Contribution to the plan / benefit paid to retirees

Which of the following is classified as nonmonetary?

• Financial assets measured at fair value

• Renewable broadcast license

• Amortized cost using the effective interest method of amortization

• Contribution to the plan / benefit paid to retirees

Which of the following is NOT a component of employee benefits expense?

• Taxable temporary differences

• Contribution to the plan / benefit paid to retirees

• Amortized cost using the effective interest method of amortization

• Accrued warranty costs

Under PFRS for SMEs, basic debt instruments are subsequently measured at:

• Deferral of expense under the asset method

• Accrued warranty costs

• Taxable temporary differences

• Amortized cost using the effective interest method of amortization

Which of the following DOES NOT result in a deferred tax asset?

• Taxable temporary differences

• Accrued warranty costs

• Deferral of expense under the asset method

• Postdated checks and IOUs

1. Which of the following temporary differences ordinarily creates a deferred tax asset?

• In the profit or loss only

• Deferral of expense under the asset method

• Accrued warranty costs

• Transaction costs should be expensed outright at initial recognition.

1. Which of the following adjusting entries CANNOT be subject to reversing entries?

• In the profit or loss only

• Deferral of expense under the asset method

• Transaction costs should be expensed outright at initial recognition.

• Errors made by the company