All of the Following Are Property Plant and Equipment Except

Multiple Choice:

1.
Which defines property, plant and equipment?

a.
Tangible asset

b.
Held for use in the production or supply of goods or services, for rental to others or for

administrative purposes

c.
Expected to be used during moreast than one reporting period

d.
All of these define holding, plant and equipment

2.
The cost of an item of property, constitute and equipment comprises all of the following,

except

a.
Purchase price

b.
Import duties and
nonrefundable
purchase taxes

c.
Cost directly attributable in bringing the asset to the location and
condition for the

intended use

d.
Initial gauge of the price of dismantling and removing the item and restoring

the site , the obligation for which the entity does not incur when the item was

acquired

3.
Directly aspect costs in bringing nugget to the location and condition for the intended use

include all of the following,
except

a.
Toll of employee benefits not arising directly from the acquisition of belongings,

plant and equipment.

b.
Cost
of site preparation

c.
Initial delivery and handling cost

d.
Installation, associates and testing cost, including professional fee.

4.
Which of the post-obit costs should be expensed immediately?

a.
Cost of opening a new facility

b.
Cost
of introducing a new product, including advertising
and productionion

c.
Cost of conducting business in a new location, including cost of staff training

d.
All of these are expensed immediately.

5.
Which of the post-obit costs
should exist included
in the autorying amount of property, plant

and equipment?

a.
Cost incurred while an item capable of operating in the manner intended by direction

has yet to exist brought into use or is operated at less than total capacity.

b.
Initial operating loss

c.
Cost of relocating or reorganizing office or all of an entity’s operations

d.
None of these should exist included in the carrying amount of property, plant and

equipment.

six.
The cost of a nonmonetary asset acquired in exmodify for another nonmonetary nugget and

the exchange has commercial substance is normally recorded at

a.
The fair value of the asset given upwardly and gain or loss is recognized.

b.
The fair value of the asset given upward and gain just not a loss
may be recognized.

c.
The fair value of the assets received if it is equally reliable as the fair value of the asset

given up.

d.
Either the fair value of the asset given upwardly or the asset received whichever one results in

the largest gain or smallest loss.

vii.
Which of the following nonmonetary exchange transaction has

commercial substance?

a.
Exchange of assets with no difference in future greenbacks flows.

b.
Exalter of assets by entities in the
aforementioned line of business.

c.
Exchange of assets with difference in future cash flows.

d.
Exchange of an equivalent interest in similar productive avails that causes the entities

involved to remain in essentially the same economical position.

eight.
The configuration of cash flows of the assets exchanged includes which of the following?

a.
The implicit interest rate, maturity of loan and amount of loan

b.
The take chances, timing and amount of cash flows of the assets

c.
The entity– specific value of the asset which is equal to fair value

d.
The estimated present value of avails exchanged

9.
If payment for an asset is deferred beyond normal credit terms, the difference between the

total payment and greenbacks price equivalent
should be

a.
Considered interest due eastxpense of the current twelvemonth

b.
Included as part of the asset toll

Why is this page out of focus?

This is a Premium document. Become Premium to read the whole certificate.

Why is this page out of focus?

This is a Premium document. Become Premium to read the whole certificate.

Why is this page out of focus?

This is a Premium certificate. Get Premium to read the whole certificate.

Why is this page out of focus?

This is a Premium certificate. Become Premium to read the whole document.

Why is this page out of focus?

This is a Premium certificate. Become Premium to read the whole document.