Learning Activity 01 LM01

Tangible assets that are held for use in business that are expected to be used for more than one year.

• Dynamic Assets
• Property, Plant and Equipment (Fixed Assets)

• Variable Assets
• Movable Assets

When several assets are acquired at a lumpsum price, it is necessary to apportion the single price to the assets acquired on the basis of relative _____________.

• Appraised value

• salvage value

• Fair value

• Carrying value

When an asset is acquired on account subject to discount, the cost of the asset is equal to

• Present value of cash payments

• List price

• Net invoice price less discount when taken

• Net invoice price less discount

What is the preferred cost basis when payment for the property is deferred beyond normal credit terms?

• Cash price equivalent

• Present value of all payments

• Future value of all payment

• Net invoice price

If property is acquired through the issuance of share capital, the property shall be measured at an amount equal to

• Cash price equivalent

• Par value or stated value of the share capital

• Fair value of share capital

• Fair value of the property received

When an entity acquires an asset by issuing bonds payable, the asset acquired is measured preferably at

• Fair value of the bonds

• Cash price equivalent

• Face value of the bonds payable

• Fair value of the property received

If the exchange transaction lacks commercial substance, the acquired PPE is measured at the

• Fair value of the property given

• Carrying amount of the asset received

• Carrying amount of the asset given

• Fair value of the property received

If the property is acquired in an exchange with commercial substance, the cost is equal to

• Fair value of the property given

• Fair value of the asset given plus cash payment

• Fair value of the asset given minus cash received

• Fair value of the property given or received whichever is more clearly determinable

Capitalizable make-ready costs related to a new machine do not include

• a.      rearrangement costs related to the machine

• cost of training employees to use the machine

• installation costs

• nonrefundable taxes related to the machine

Capitalizable make-ready costs related to a new machine do not include

• a.      rearrangement costs related to the machine

• cost of training employees to use the machine

• installation costs

• nonrefundable taxes related to the machine