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EBA2013 - LU1 (PPE)

Total câu hỏi: 11

Worksheet time: 6mins

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1.

The following statement refers to Paragraph 6 of MFRS 116, which states that PPE is tangible assets, EXCEPT

a)

PPE held for the use of production or supply of goods or services

b)

PPE use for rental

c)

PPE use for administrative purposes

d)

PPE only use for one period

2.

MFRS 16 listed the following assets under the standard of PPE, EXCEPT

a)

Biological assets

b)

Agriculture assets

c)

Natural gas

d)

Grass

3.

Which of the following statement is TRUE about the usefulness of qualitative characteristic of PPE?

a)

The information is relevant if it enables users to make decisions

b)

The information is relevant if it enables preparers to make decisions

c)

Information is material if its omission not misleads users to make decisions

d)

Information not presents a depiction of that it purports to indicate to users

4.

MFRS 116 outlines the criteria that need to be present to recognise PPE: (i) the entity expects to obtain an economic benefit; (ii) the cost can be reliably measured.

a)

True

b)

False

5.

A self-constructed asset is built by an entity for its own use and recognised based on cost and related expenditure (e.g., a material used, labour and contractor costs).

a)

True

b)

False

6.

In capitalising on interest, the entity must ensure that it does not exceed the actual interest.

a)

True

b)

False

7.

MFRS 116 allows certain methods for treating the revaluation model for PPE. Which of the following statements is correct?

a)

Cost basis

b)

Proportion basis

c)

Revalue basis

d)

Devalue basis

8.

Under Revaluation Model, when a PPE is revalued downwards, the loss shall be recorded as a loss in other comprehensive income, and it reduces accumulated equity in the revaluation surplus.

a)

True

b)

False

9.

The asset is derecognized if it is disposed of or economic benefits cease to flow from the asset.

a)

True

b)

False

10.

When a PPE is derecognised, the revaluation surplus for the PPE is transferred _________?

a)

Returned Earnings

b)

Current Assets

c)

Expenses

d)

Cash and Bank

11.

There are issues arrising from accounting for PPE, EXCEPT

a)

Initial measurement

b)

Subsequent measurement

c)

Income focus

d)

Standard practice