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Investment in Equity

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following is the first order of priority in recording acquisition of equity shares

a)

Fair value of the asset received

b)

Fair market value of the asset given

c)

Carrying amount of the asset given

d)

carrying amount of the asset received

2.

All investments in equity instruments shall be measured at fair value?

a)

TRUE

b)

FALSE

3.

Upon derecognition of financial assets measured at fair value through profit or loss, the difference between consideration received and the carrying amount shall be recognized in other comprehensive income

a)

TRUE

b)

FALSE

4.

The following are dividend income except

a)

Property dividends

b)

liquidating dividends

c)

Shares received in lieu of cash

d)

Cash dividends

5.

When to recognized dividend as income?

a)

Upon issuing of shares

b)

Upon date declaration

c)

Upon date of record

d)

Upon date of payment

6.

A shareholder may received a share dividends which is different from the original shares?

a)

TRUE

b)

FALSE

7.

It refers to a transaction whereby the outstanding shares are called in and replaced by a large number accompanied by a reduction in the par or stated value of each share?

a)

Special assessments

b)

Investment in unquoted equity instruments

c)

Split up

d)

Share right

8.

Accounting for share rights may account for the following

a)

Accounted for separately

b)

No accounted for separately

c)

Both

d)

Neither of the two

9.

Share rights accounted for separately are normally classified as

a)

Share capital

b)

Current asset

c)

Non-current asset

d)

Liability

10.

If the shares rights were not exercised and expired, what is the journal entry?

a)

A credit to investment in equity instruments

b)

Memorandum entry

c)

A debit on loss on share rights

d)

none of the above