INATRE MIDTERM RANDOM SHIT

Question 1

Transaction cost are ___________ in the measurement of your note payable.

Answer 1

Included

Question 2

If the note payable is irrevocably designated at fair value through profit or loss, the transaction costs are _________________ immediately.

Answer 2

expensed

Question 3

The amortized cost of note payable is the amount at which the note payable is measured initially:

A. Minus principal repayment

B. Plus or minus the cumulative amortization using the ________________ method of any difference between the face amount and present value of the note payable.

Answer 3

effective interest

Question 4

The difference between the face amount and present value is either ___________ or ____________ on the issue of note payable.

Answer 4

discount, premium

Question 5

When the note payable is issued solely for cash, the present value is _______ to the cash proceeds.

Answer 5

equal

Question 6

When the property or noncash asset is acquired by issuing a promissory note which is interest bearing, the property or asset is recorded at the ___________________.

Answer 6

purchase price

Question 7

When a non-interest bearing note is issued for property, the property is recorded at the ___________ of the property.

Answer 7

cash price

Question 8

PFRS 9, Paragraph 4.2.2 provides that at inital recognition a note payable may be ___________________________ as at fair value through profit or loss.

Answer 8

irrevocably designated

Question 9

PFRS 9, Paragraph 5.7.7, provides that the gain or loss on financial liability designated at fair value through profit or loss shall be recognized either in other __________________________ or profit or loss.

Answer 9

comprehensive income

Question 10

_______________ does not include market risks.

Answer 10

Credit risk

Question 11

Under fair value option any _____________________is recognized as outright expense.

Answer 11

transaction cost

Question 12

The objective of the creditor in a _____________________ is to make the best of a bad situation or maximize the recovery of investments.

Answer 12

debt restructuring

Question 13

PFRS 9, 3.3.1, _____________ is treated as a derecognition of a financial liability or extinguishment of an obigation.

Answer 13

Asset swap

Question 14

The difference between the carrying amount of the financial liability and the consideration given shall be recognized in ___________________.

Answer 14

profit or loss

Question 15

Dacion en pago arises when _________________________is offered by the debtor in full settlement of the debt.

Answer 15

mortgaged property

Question 16

If the balance of obligation including accrued interest and other charges is MORE than the carrying amlunt of the property mortgaged, the difference is _________on extinguishment of debt.

Answer 16

gain

Question 17

If the balance of obligation is LESS than the carrying amount of the property mortgaged, the difference is _______ on extinguishment of debt.

Answer 17

Loss

Question 18

____________ is the issuance of share capital by the debtor to the creditor in full or partial payment of an obligation.

Answer 18

Equity swap

Question 19

_________________ may involve a reduction of interest rate foregiveness of unpaid interest or a moratorium on interest.

Answer 19

Interest concession

Question 20

To be a ____________ , a contract must convey the right to control the use of an identified asset.

Answer 20

lease

Question 21

All leases shall be accounted for by lessee as a ____________ lease under the new lease standard.

Answer 21

finance

Question 22

A lease that contains a purchase option is not a ____________ lease.

Answer 22

short-term

Question 23

An is a lease that does not transfaer substantially all the risk and rewards incidental to ownership of an underlying asset.

Answer 23

operating lease

Question 24

Under USA GAAP, major part means at least ____ of the economic life of an asset.

Answer 24

75%

Question 25

Under USA GAAP, substantially all means at least ___ of the fair value of the leased asset.

Answer 25

90%

Question 26

If the lease payments cannot be allocated reliably between the two elements, the entire lease is classified as a __________lease, unless it is clear that both elements are operating leases.

Answer 26

finance

Question 27

A direct financing lease recognizes only ______________.

Answer 27

interest income

Question 28

A ___________ lease recognises interest income and gross profit on sale.

Answer 28

sales type

Question 29

The initial direct cost would effectively spread the _______________ over the lease term and reduce the amount of interest income.

Answer 29

initial direct cost

Question 30

Gross investment in the lease is equal to the gross rentals for the entire lease term plus the absolute amount of the ______________whether guaranteed or unguaranteed,

Answer 30

residual value

Question 31

_________________-is equal to the net investment in the lease (present value of lease payments or fair value of the asset), whichever is lower.

Answer 31

Sales revenue

Question 32

Initial direct cost is _____________________________ in a sales type lease as component of cost of goods sold.

Answer 32

expensed immediately

Question 33

The present value of the unguaranteed residual value is______________ from the cost of the underlying asset in computing cost of goods sold.

Answer 33

deducted

Question 34

The unguarateed residual value is ___________________as lease payment as far as the lessee is concerned.

Answer 34

not considered

Question 35

The carrying amount of the lease receivable is __________ to the balance of the lease receivable ________ the unearned interest income.

Answer 35

equal, minus

Question 36

A _____________________ transaction may occur when the seller-lessee is experiencing cash flow or financing problem or because there are tax advantages in such arrangement in the lessee’s jurisdiction

Answer 36

sale and leaseback

Question 37

In sale and leaseback transaction there is ______________transfer of asset.

Answer 37

no physical

Question 38

Is an arrangement whereby one party sells an asset to another party and then immediately leases the asset back from the new owner.

Answer 38

Sale and leaseback