Reference no: EM132888968

Problem 1: On October 1, 2019, an entity borrowed cash and signed a three-year interest-bearing note on which the principal is payable on October 1, 2019 and interest is payable every September 30. On December 31, 2019, accrued interest payable should

a. be reported as part of noncurrent note payable

b. be reported as noncurrent liability

c. be reported as current liability

d. not be reported as liability

Problem 2: Statement 1: PAS 36, paragraph 104, provides that when an impairment loss is recognized for a cash generating unit (CGU), such loss shall be allocated first to the goodwill allocated to the CGU and then to all other noncash assets of the cash CGU prorate based on carrying amount. Statement 2: The revaluation surplus that is realized because of the use of the asset or disposal of the asset may be transferred directly to retained earnings.

A. Only Statement 2 is true

B. Only Statement 1 is true

C. Neither statements are true

D. Both statements are true

Problem 3: The components of defined benefit cost include all, except

a. Remeasurements

b. Net interest

c. Service cost

d. Contribution to the plan