WorksheetsNon current Assets IAS 16
Total questions: 8
Worksheet time: 4mins
Which of the following best explains what is meant by ‘capital expenditure’?
Expenditure on non-current assets, including repairs and maintenance
Expenditure on expensive assets
Expenditure relating to the issue of share capital
Expenditure relating to the acquisition or improvement of non-current assets
Which one of the following costs would be classified as revenue expenditure on the invoice for a new
company car?
Road tax
Number plates
Fitted stereo radio
Delivery costs
Which one of the following assets may be classified as a non-current asset in the financial statements of a business?
A tax refund due next year
A motor vehicle held for resale
A computer used in the office
Cleaning products used to clean the office floors
Which of the following items should be included in current assets?
(i) Assets which are not intended to be converted into cash
(ii) Assets which will be converted into cash in the long term
(iii) Assets which will be converted into cash in the near future
(i) only
(ii) only
(iii) only
(ii) and (iii)
Which of the following statements describes current assets?
Assets which are currently located on the business premises
Assets which are used to conduct the organisation’s current business
Assets which are expected to be converted into cash in the short-term
Assets which are not expected to be converted into cash in the short-term
What is the purpose of charging depreciation in financial statements?
To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use
To ensure that funds are available for the eventual replacement of the asset
To reduce the cost of the asset in the statement of financial position to its estimated market value
To account for the ‘wearing-out’ of the asset over its life
Which one of the following statements correctly defines non-current assets?
Assets that are held for use in the production of goods or services and are expected to be used during more than one accounting period
Assets which are intended to be used by the business on a continuing basis, including both tangible and intangible assets that do not meet the IASB definition of a current asset
Non-monetary assets without physical substance that are controlled by the entity and from which future benefits are expected to flow
Assets in the form of materials or supplies to be consumed in the production process
What are the correct ledger entries to record an acquisition of a non-current asset on credit?
Dr. Non-current assets – Cr. cost Receivables
Dr. Payables Non-current assets – Cr. cost
Dr. Non-current assets – Cr. cost Payables
Dr. Non-current assets – Cr. cost Revaluation surplus
