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WorksheetsIMACT02- Review (1)
Total questions: 28
Worksheet time: 23mins
According to PAS 16, an item of PPE acquired through purchase is initially recognized at fair value.
True
False
If the fair value of an asset given-up in an exchange transaction that has commercial substance is not reliably determinable, the asset received is measured at its fair value, adjusted for any cash received or paid in the exchange.
True
False
PAS 16 defines depreciation as the " decrease in the value of an asset."
True
False
Which of the following is excluded from PPE?
Equipment held for rentals.
Major spare parts and long-lived stand-by equipment.
Held For Sale Assets
Buildings Used In Business
An asset is not considered fully depreciated:
A. the asset's carrying amount is equal to residual value.
B. the asset is temporarily taken out out of use.
C. the asset's carrying amount is equal to zero.
A and B
Which of the following is least likely capitalized as cost of land?
Grading, filling, draining clearing and similar site development activities
Survey
Special Assessment
Landscaping and similar improvements that have limited useful lives.
The most commonly used depreciation method is the
Straight-Line Method
Replacement Method
Depreciation Method Based On Revenue
Inventory Method
PAS 41 Agriculture applies to all biological assets, including bearer plants
True
False
Biological asset is a living animal or plant
True
False
According to PAS 41, Biological assets are measured at the lower of carrying amount and fair value less costs to sell.
True
False
Which of the following is considered as a biological asset under PAS 41?
Carcass
Piggy Bank
Ham
Pig
Which of the following is considered a bearer plant to be accounted for under PAS 46?
Palm oil
Corn oil
Vegetable oil
Oil palm
Which of the following is not one of the common features of agricultural activities?
Accounting Change
Capability To Change
Management Of Change
Measurement Of Change
A PPE acquired from donation is initially recognized at the fair value of the asset given up.
True
False
The initial cost of an item of PPE includes
Purchase Cost
Decommissioning And Restoration Costs
Direct Costs
All Of The Above
The cost of routine design of products is considered an R&D expense.
False
True
The major problem of accounting for intangibles is determining
Useful life
Fair Market Value
Salvage Value
Seperability
Copyright should be amortized over
Twenty Years
Useful Life
Legal Life
Life Of The Creator + 90 years
Which of the following costs may be capitalized?
Cost Of Internally Generated Goodwill
Cost Of Customer List Acquired Externally
Cost Of Internally Generated Mastheads
None Of The Above
Which is classified as a biological asset.
Pigs
Felled Trees
Sheep
Wool
Sugarcane
PAS 41 Agriculture is applicable to which of the following?
Agricultural Produce After The Point Of Harvest
Bearer Plants Related To Agricultural Activity
Living Animals Related To Agricultural Activity
Stevey Wonderland Co. has the following assets:
Harvested Mangoes 200,000
Wooden Furniture 700,000
Felled Trees 300,000
Compute the amounts of the Inventory
200,000
700,000
300,000
1,200,000
1,000,000
Stevey Wonderland Co. has the following assets:
Coffee Plants 100,000
Timber Trees 600,000
Harvested Mangoes 200,000
Compute the amounts of the biological asset.
100,000
800,000
600,000
900,000
200,000
Sound Co. has the following assets:
Maize Plants 100,000
Harvested Latex 600,000
Wooden Furniture 99,000
Rubber Trees 40,000
Corn Oil 700,000
Compute for the amounts of the following: (2 ANSWERS)
A. PPE
B. Agricultural Produce
740,000
40,000
600,000
1,300,000
640,000
Biantita Co. incurred the following costs during 20x1:
Testing In Search For Process Alternative 230,000
Routine Designs Of Tools, Jigs, Molds, And Dies 125,000
How much is the research and development expense in 20x1?
0
125,000
230,000
355,000
A reporting entity may capitalize borrowing costs if it chooses to do so.
True
False
Depending on the circumstance, inventories can be qualifying assets.
True
False
Qualifying Asset Is?
It is an asset that is financed by borrowings.
It is a long-term asset that is specialized in nature that only the entity can use without any substantial modification.
It is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
All of the above
None of the Above
