Robert Cosigns a Note for His Friend Amelia,which She Has

question 56

Multiple Choice

Robert cosigns a note for his friend Amelia,which she has given to Credit Union to secure a loan.Suppose the note was originally for $5,000 and payable in 12 months with interest at 10 percent a year.Credit Union and Amelia later agree that Amelia will have 24 months to repay the note but that the interest will be 13 percent per year.Robert is not aware of this change of terms.In the event of Amelia defaulting on the loan,will Robert have to repay the debt?

• A)Robert will have to pay the debt because he is the surety.
• B)Robert will not have to pay the debt because he has not received any compensation from Amelia for being a surety.
• C)Robert will have to pay the debt because he is the guarantor.
• D)Robert will not have to pay the debt because he has not accepted the changed terms of the loan.

Distinguish between strategic and non-strategic investments based on accounting methods.

Recognize the accounting treatment of investments under IFRS 9.

Understand reporting requirements under the Accounting Standards for Private Enterprises (ASPE).

Describe the recognition of gains and losses on fair value through profit or loss (FVTPL) securities and their impact on net income.

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Definitions:

Sex Therapist

A professional specialized in treating clients with sexual problems or dysfunctions through counseling and therapy.

Testimonials

Statements made by individuals based on personal experience, observation, or knowledge.

Value Judgments

Evaluations based on personal or societal standards of what is important, good, or desirable.

Objectivity

The observation of things as they exist in reality as opposed to one’s feelings or beliefs about them.