Quiz P&A

Which of Property Plant and Equipment (PP&E) should not be depreciated?

• Land
• Buildings
• Goodwill

The useful life of an asset which has been placed into service may be lengthened in certain circumstances, but must not be shortened.

• True
• False

On which account the costs are accumulated before an asset is placed in service when it is in a condition or state of readiness and is available for its intended use?

• Customer- Related account
• Construction in Progress (CIP) account.
• Leasehold improvements

Engineering costs may be capitalized if:

• The costs are directly identifiable with a specific asset/project which meets the capitalization criteria for Property, Plant and Equipment PP&E.
• The acquisition of the asset is not probable.
• The capitalization criteria for Property, Plant and Equipment PP&E is not met

The engineering hours reported against each project in the time reporting system are valued at ?

• Insurance rates
• Burden rates
• Work in progress rate

During which stage engineering costs relating to fixed assets may be incurred:

• Pre-acquisition
• Construction
• All of the above

How often a fixed asset record review must be done for all 3M leased and owned assets.  This includes all tagged, untagged, and taggable assets?

• once every 4 year
• Annually
• once a month

For 3M locations, all tagged, untagged, and taggable assets that are leased or owned, must be physically verified: every 5 years at a minimum. 

• every 5 years at a minimum.
• Annually
• every 2 years at a minimum

A completion of the physical verification and the annual fixed asset record review, completion confirmation, or progress towards completion for the verification, must be reported by cost center/location to the GSC or GFAC – Property Accounting, and the appropriate Financial Manager by:

• September 30.
• December 31.
• October 31.

When transferring assets between legal entities:

• The legal entity shipping the asset must process an AFD to dispose of the asset.
• The legal entity receiving the asset must processn AFD to dispose of the asset.
• Transfer must be accomplished in the same accounting year for both the transferring and receiving legal entities.