1. Under PFRS no. 9, which is not a category for accounting for investments?

a. Fair value through profit and loss

b. Fair value through other comprehensive income
c. Held-to-maturity
d. Amortized cost

2. If the less combined market value of trading securities at the end of the year is less than the
market value of the same portfolio of trading securities at the beginning of the year, the
difference should be accounted for by

a. Reporting an unrealized loss in security investments in the stockholders’ equity section

of the balance sheet
b. Reporting an unrealized loss in security investments in the income statement
c. A footnote to the financial statements
d. A credit to investment in trading securities

3. A significant influence as defined in PAS 28 is

a. The power to participate in the financial and operating policy decision of the investee
but is not control or joint control over those policies
b. Deemed to exist when the investor is exposed, of has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its
power over the investee
c. The contractually agreed sharing of control of an arrangement, which exists only when
decision about the relevant activities require the unanimous consent of the parties
sharing control
d. The power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities

4. An entity over which the investor has significant influence is called a(an)

a. Associate
b. Subsidiary
c. Joint venture
d. Joint operation