ACC 577 Week 7 Quiz Question 1 Hedges of foreign currency risks can be the hedge of: Question 2
On its December 31, 2004 balance sheet, Nilo Corp reported bonds payable of $ 8,000,000 and related unamortized bond issue costs of $ 430,000. The bonds had been issued at par. On January 2, 2005, Nilo retired $ 4,000,000 of the outstanding bonds at par plus a call premium of $ 100,000. What amount should Nilo report in its 2005 income statement as loss on extinguishment of debt?
Question 3
Servco, a loan servicing agency, paid $ 60,000 to acquire a three-year right to service $ 1,000,000 of Banco ' s loans. Servco will be entitled to a servicing fee of 1 % of the interest and fees collected during the three-year period. Servco expects its servicing fees to be: Which one of the following is the amount of gross profit after amortization of the servicing asset that Servco expects to earn over the three-year life of the service contract?
Question 4
Specific disclosures in financial statements are required when an entity engages in:
Question 5
Which one of the following sets best describes the meaning of the terms " underlying " and " notional amount " as applied to derivative instruments?
Question 6