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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 the $60,000 acquisition fee that Servco should amortize
during year 1?
Question 8
Which of the following, if any, can be the risk being hedged in
a foreign currency hedge?
Question 9
A derivative financial instrument is best described as:
Question 10
Which of the following conditions must be met for
derecognition of a transferred financial asset to occur under
IFRS? I. The financial asset has been transferred outside the
consolidated group of the transferor. II. The transferor has
transferred substantially all of the risks and rewards of
ownership of the financial asset. III. The contractual rights to
the financial assets cash flows cannot be retained by the
transferor, but must be transferred to the transferee.
Question 11
Where in its financial statements should a company disclose
information about its concentration of credit risks?