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5) The fair value option under IAS: A) Required firms to report assets or liab at Fair value on @)s B) The resulted unrealized gain or loss should by reported as other comprehensive income in the equity section/ BS. At the end of each accounting period company has the option to report assets or liability either at HC or fair value . D) A&B E) None of the above is truef. a. 6) Under the equity method, unrealized holding gains (losses) are A. Reported as a separate component of stockholders' equity. B. Part of net income. C. Not recognized. D. Reported as other comprehensive income. E. None of the above. 7) Which of the following is an example of managing earnings up? Increasing the estimated salvage value of equipment. b. Decreasing the estimated useful life of equipment. C. Underestimating warranty claims. d. A &C e) all of the above. 8) Comprehensive income includes all of the following except dividend revenue. b. losses on disposal of assets. c. investments by owners. d. unrealized holding gains. 9) Selling treasury shares at 95% of its cost leads to: A A decrease in owners' equity. B) A decrease in net income & owners' equity. C) A decrease in comprehensive income & an increase in owners' equity. D) A&B E) B & C F) None of the above is true. a. r. Cash CTS 10) Which of the following statement is the most true A) If bond issued at premium the reported value (carrying value) of bond will be decreasing during the bond term (period). B) If bonds issued at discount annual inertest expenses will be higher than annual interest payment during the bond period. C) Bond issued at discount when the market rate of interest is higher than the stated rate of interest. D A &B E) B&C (F) all of the above. 11) Which of the following statement is the most true A) Trading securities should be reported at fair value with unrealized gain or loss reported in the income statement. B) Available for sales securities should be reported at fair value with unrealized gain or loss reported among other comprehensive income in the B/S. C) If short term securities are not traded in active market they should be reported at COST. D) A & B. E) All of the above statements are true. 12) Which of the following statement is the most true