With explanation please PROBLEMSPROBLEM 1: TRUE OR FALSE1. If credit risk has not increased significantly since initialrecognition, an entity may recognize a loss allowance equal to12-month expected credit losses.2. The effect of direct origination cost is a decrease in theeffective interest rate of a loan receivable.3. The impairment model under PFRS 9 is referred to as theexpected credit loss model.4. The impairment requirements of PFRS 9 are applicable to alldebt instruments including those that are measured at fairvalue through profit or loss.5. The recoverable amount of a credit-impaired financial asset(but not purchased or originated credit-impaired or variablerate loan) is computed as the present value of the remainingr cash flows from the instrument discounted at the current rateat the reporting date.6. Entities may apply a simplified approach when recognizingimpairment losses on trade receivables.7. When there is a significant increase in the credit risk of afinancial asset since its initial recognition but there is noobjective evidence of impairment, interest revenue iscomputed on the net carrying amount of the financial asset(i.e., gross carrying amount less loss allowance).8. An entity recognizes impairment gain when there is animprovement in the credit quality of a previously impairedfinancial asset.9. According to PFRS 9, expected credit losses are the weightedaverage of credit losses with the respective risks of a defaultOccurring as the weights.10. A financial asset is credit-impaired when one or more eventsthat have a detrimental impact on the estimated future cashflows of the financial asset have occurred.

1. The answer is True. This answer is true because, if credit risk has not increased significantly…

Answered: PROBLEM 1: TRUE OR FALSE If credit risk…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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In 2022, Ellen and Ed, married filing jointly, had $10,000 mortgage interest, $2,000 real estate taxes, $2,000 state income tax, and medical expenses of $2,000. Assuming they had an adjusted gross income of $50,000, which of the following is TRUE? Question 12Select one: a. They should take a standard deduction of $24,000. b. They should take a standard deduction of $12,000 c. They should take an itemized deduction of $14,000. d. They should take an itemized deduction of $16,000.
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Case H Pearson Air Conditioning & Service Managing A Firm’s 1. Evaluate the overall performance and financial structure of Pearson Air Conditioning & Service.,2. What are the strengths and weaknesses in this firm’s management of accounts receivable and inventory?,3. Should the firm reduce or expand the amount of its bank borrowing?,4. Evaluate Pearson’s management of accounts payable.,5. Calculate Pearson’s cash conversion period. Interpret your computation.,6. How could Pearson Air Conditioning & Service improve its working-capital situation? please solve only question no-3

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PROBLEM 1: TRUE OR FALSE If credit risk has not increased significantly since initial recognition, an entity may recognize a loss allowance equal to 12-month expected credit losses. The effect of direct origination cost is a decrease in the 1.