pre-final exam Flashcards
When an investor uses the cost method to account for investment in ordinary shares, how would cash dividends received by the investor from the investee be recorded?
Dividend income
What does the effective interest method of amortizing discount provide?
Increasing amortization and increasing interest income
These are dividends generally recognized as receivable or as income when received.
Cash dividends
What is the initial measurement of an intangible asset recquired by way of a government grant?
Either fair value or nominal amount or zero plus directly attributable expenditures
What is the measurement of an intangible asset after initial recognition?
Cost model or Revaluation model
Which of the following cases represents bond sold at a premium?
When stated rate is greater than market rate
These represent ownership interest, such as ordinary and preference shares.
Equity securities
These are the issuance of shares in the same class held by the shareholders.
Share dividends
These are revenues or reduction in future cost that can be obtained in using the asset.
Future economic benefit
These are dividends generally recognized as receivable or as an income when received.
Cash dividends
Which intangible asset should be reported as a separate line item in the statement of financial position?
Goodwill
These are corporate distributions to shareholders proportionate to the number of shares held by the latter.
Dividends
Which intangible asset should be reported as a separate line item in the statement of financial position?
Goodwill
Which of the following cases represents bonds sold at a premium?
When stated rate is greater than market rate
When an investor purchased a bond between interest dates at a premium, which of the following corresponds to the cash paid to the seller?
More than the face amouunt of the bond
