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Exam (elaborations)

Chapter 9 ACAF Exam Questions With Verified Answers

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Chapter 9 ACAF Exam Questions With Verified Answers Question 1 The two main types of investments are: -Entry field with correct answer -equity instruments and inventory. -cash and property,plant and equipment. -debt instruments and equity instruments. -debt instruments and cash. - answerdeb...

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  • September 27, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ACAF
  • ACAF
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Chapter 9 ACAF Exam Questions With
Verified Answers


Question 1
The two main types of investments are:


-Entry field with correct answer
-equity instruments and inventory.
-cash and property,plant and equipment.
-debt instruments and equity instruments.

-debt instruments and cash. - answer✔debt instruments and equity instruments.
Practice Question 2


There are many different motivations that companies have for investing in debt and equity
instruments issued by other companies, including all of the following except:




-to earn interest, dividends, or capital appreciation.
-to control the operations of another company.
-to raise funds for repayment of short-term liabilities.

-to obtain a special relationship with a supplier or customer. - answer✔to raise funds for
repayment of short-term liabilities.
Practice Question 3

, ©BRAINBARTER 2024/2025


The three major models of accounting for investments include all of the following except:




cost/amortized cost model.


replacement value model.


fair value through net income model.


fair value through other comprehensive income model. - answer✔replacement value model.
Practice Question 4


When one corporation acquires control of another entity, the investor corporation is referred to as
the parent and the investee corporation as the:




child.


joint venture.


subsidiary.


associate. - answer✔subsidiary.
Practice Question 9


Application of the cost model to the investment one company makes in another entity's shares is
straightforward and includes all of the following except:

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