Question

For the year ended 31/12/2020, the financial statements of ABC Company were authorized for issue on 31/3/2021. On 31/12/2020, ABC’s Balance Sheet showed short-term investments valued at $6000. On 12/3/2021, the fair value of the said investments was $5300 (material). How should IAS 10 account for this event? Select one: a. Loss on short-term investments 700 Short-term investments 700 b. Share Capital 700 Short-term investments 700 c. NO Action d. Disclosure in the notes e. Cost of goods sold 700 Short-term investments 700 f. All answers are false g. Cash 5300 Short-term investments 5300 h. Income Statement 700 Short-term investments 700 

          For the year ended 31/12/2020, the financial statements of ABC Company were authorized for issue on 31/3/2021.

On 31/12/2020, ABC’s Balance Sheet showed short-term investments valued at $6000.

On 12/3/2021, the fair value of the said investments was $5300 (material).

How should IAS 10 account for this event?

Select one:

a. Loss on short-term investments 700 Short-term investments 700

b. Share Capital 700 Short-term investments 700

c. NO Action

d. Disclosure in the notes

e. Cost of goods sold 700 Short-term investments 700

f. All answers are false

g. Cash 5300 Short-term investments 5300

h. Income Statement 700 Short-term investments 700
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Added by Bruce A.

Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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For the year ended 31/12/2020, the financial statements of ABC Company were authorized for issue on 31/3/2021. On 31/12/2020, ABC’s Balance Sheet showed short-term investments valued at $6000. On 12/3/2021, the fair value of the said investments was $5300 (material). How should IAS 10 account for this event? Select one: a. Loss on short-term investments 700 Short-term investments 700 b. Share Capital 700 Short-term investments 700 c. NO Action d. Disclosure in the notes e. Cost of goods sold 700 Short-term investments 700 f. All answers are false g. Cash 5300 Short-term investments 5300 h. Income Statement 700 Short-term investments 700
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Transcript

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00:02 Estimate net operating working capital estimate a net operating working capital in or w's was your total current asset minus current liability minus notes favor.
00:38 That's depreciation.
00:42 So we have the polling information answer statement publishing total current assets is current is dollar.
00:57 15 lakh 5000 current liability back to thousand boots fable or a four lakh 76 ,000 appreciation for the one lakh 50 ,000...
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