Fill This Form To Receive Instant Help
Homework answers / question archive / Ch 3 Practice MCQs 1) Inputs to income models include which of the following? using a risk-free and risk-adjusted interest rate adjusting cash flows and the discount rate in the same calculation actual cash flows time value of money Under the expected cash flow approach, the model is best used where the element being measured does not have variable cash flows
1) Inputs to income models include which of the following?
d) the cash flow uncertainty is dealt with by using probabilities.
c. cash flow measures.
d. current value measures.
c) biological assets.
d) financial instruments carried at cost.
a) The discount rate is adjusted to accommodate the riskiness of the cash flows.
future cash flows at the end of each year.
Year 1 |
Year 2 |
Year 3 |
$4,000 |
$6,000 |
$7,000 |
Assuming Frontier Landscaping’s equipment has a carrying value of $16,000, how much of an impairment loss must Frontier record?
b) $383
c) $6,606
d) $2,518
7. The cost model attempts to reflect the amount that would be required to
a) replace the asset’s service capacity.
8. A fair value measure under IFRS 13 is based on which view of fair value?
a) market participant view
9. Branson Company deposited $5,800 in an account paying 2.5% annual interest. How much compound interest would Branson earn in 3 years?
a)$6,235
b) $435
c) $145
d) $446
10. Pearson Corporation makes an investment today (January 1, 2020). They will receive
$9,000 every December 31 for the next six years (2020–2025). If Pearson wants to earn 12% on the investment, what is the most they should invest on January 1, 2020?
a) $37,003
b) $41,443
c) $73,036
d) $81,801