Section A: Short Essay (Total: 5 mark Question 1 What are the factors that may affect the bond selling price valuation? ( 2 marks) Answers: Question 2 (3 marks) Explain the difference between the simple and complex capital structure used in the eamings per share computation. 1. The fair value of an asset acquired through a government grant can be recorded as deferre revenue and recognized as income over the life of the asset. Ans: True/False 2. The three factors involved in the depreciation process are the depreciation base, the useful life, and the risk of obsolescence. Ans: True/False 3. Short-term debt obligations are classified as current liabilities unless an agreement to refinance is completed before the financial statements are issued. Ans: True/False 4. Magazine subscriptions and airline ticket sales both result in unearned revenues. Ans: True/False