WorksheetsFinancial Asset at Amortized Cost
Total questions: 15
Worksheet time: 11mins
Refers to an unconditional promise to pay a sum of money at a determinable future date, and make a periodic payments at a specified rate until principal sum is paid
Financial Asset
Bond
Treasury Shares
None of the above
Refers to a party who issued bonds
investor
issuer
shareholder
borrower
Interest payments can be made at
monthly
semi-annually
annually
all of the above
Bond Investments can be classified as except
Financial asset held for trading
Financial asset at amortized cost
Financial asset at fair value through other comprehensive income
Financial asset in non-trading securities
Subsequent measurement of Financial asset at amortized cost can be classified as
At fair value through profit or loss
at amortized cost
at fair value through other comprehensive income
all of the above
Acquisition of bond investment between interest dates includes
purchase price only
both purchase price and accrued interest
either purchase price or accrued interest
none of the above
The process of allocating the bond premium as deduction from the interest income and the bond discount as addition to interest income is what we called
Depreciation
Amortization
Allocation
Neither of the choices
When the bonds is sold prior to the date of maturity, it is necessary to determine the information related to the bond investment to be used in computing the gain or loss on the sale
carrying amount
amortization of premium or discount
sales price
all of the above
A type of bonds which maybe called in or redeemed by the issuing entity prior to their date of maturity.
Convertible bonds
Redeemable preference shares
Callable bonds
None of the above
A type of bonds which give the bondholders the right to exchange their bonds for share capital of the issuing entity at anytime prior to maturity
Convertible bonds
callable bonds
redeemable bonds
none of the above
A bonds that mature on a single date
term bonds
series bonds
callable bonds
convertible bonds
A bonds which have a series of maturity dates or payable in installment basis
term bonds
callable bonds
redeemable bonds
serial bonds
This method provides for an equal amount of premium or discount amortization each accounting period
Straight Line Method
Bond Outstanding Method
Effective Interest Method
None of the above
This method is applicable to serial bonds and provides for a decreasing of amortization
Straight line amortization
Bond outstanding method
effective interest method
none of the above
This method provides an increasing amount of amortization
Straight line method
Bond outstanding method
effective interest method
none of the above
