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156-585 Exam Royal Pack

  • Exam Number/Code 156-585
  • Product Name Check Point Certified Troubleshooting Expert
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  • 394 Q&As
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    NEW QUESTION: 1
    A plot of land is acquired in exchange for US $250,000 cash and a noninterest-bearing note with a face amount of US $1,000.000 on January 1 of the current year. The US $1,000,000 is payable in installments of US $250,000 each, with the first installment due December 31 of the current year. With regard to imputing interest on this note what market rate should be used to account for interest for the current year and2) what should be done in future years when there is a change in prevailing interest rates?

    A. Option B
    B. Option C
    C. Option A
    D. Option D
    Answer: C
    Explanation:
    Determination of the imputed interest rate is made at the time the debt instrument is issued. Subsequent to initial recognition, most financial liabilities are measured at amortized cost using the effective interest method. Exceptions are those1) classified as at fair value through profit or loss or2) arising when a transfer of a financial asset does not qualify for derecognition or is accounted for on a continuing involvement basisIAS 39). Consequently, a change in the prevailing market rate does not affect the measurement of the noninterestbearing note given for the land.

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    Explanation:
    Reference:
    http://docs.adobe.com/docs/en/cq/5-6-1/getting_started/download_and_startworking.html

    Related 156-585 Exams

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    156-585

    Additional Information

    Exam Code 156-585
    Exam Name Check Point Certified Troubleshooting Expert
    Updated Jan 2, 2019
    Q & A 394 Q&As

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