Question 1

When an asset is retired, a gain or loss must be recorded.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is included in the cost of constructing a building?

Accepted Answer

A) Cost of paving a parking lot 
B) Cost of repairing vandalism damage during construction 
C) Interest incurred during construction 
D) Cost of removing the demolished building that existed on the land when it was purchased 
A) Cost of paving a parking lot 
B) Cost of repairing vandalism damage during construction 
C) Interest incurred during construction 
D) Cost of removing the demolished building that existed on the land when it was purchased

Question 3

In calculating depreciation, residual value is

Accepted Answer

A) the fair value of the asset on the date of acquisition. 
B) subtracted from accumulated depreciation to determine the asset's depreciable cost. 
C) an estimate of the asset's value at the end of its useful life. 
D) ignored in all the depreciation methods. 
A) the fair value of the asset on the date of acquisition. 
B) subtracted from accumulated depreciation to determine the asset's depreciable cost. 
C) an estimate of the asset's value at the end of its useful life. 
D) ignored in all the depreciation methods.

Question 4

Which statement is correct regarding the use of the cost model and the revaluation model?

Accepted Answer

A) The cost model is not allowed under IFRS. 
B) The revaluation model is the only model allowed under IFRS. 
C) The cost model is the only model allowed under ASPE. 
D) Either the cost model or the revaluation model can be under ASPE. 
A) The cost model is not allowed under IFRS. 
B) The revaluation model is the only model allowed under IFRS. 
C) The cost model is the only model allowed under ASPE. 
D) Either the cost model or the revaluation model can be under ASPE.

Question 5

The cost of successfully defending a patent in an infringement suit should be

Accepted Answer

A) charged to Legal Expenses. 
B) deducted from the carrying amount of the patent. 
C) added to the cost of the patent. 
D) recognized as a loss in the current period. 
A) charged to Legal Expenses. 
B) deducted from the carrying amount of the patent. 
C) added to the cost of the patent. 
D) recognized as a loss in the current period.

Question 6

The cost allocation of an intangible asset is referred to as

Accepted Answer

A) amortization. 
B) impairment. 
C) depreciation. 
D) depletion. 
A) amortization. 
B) impairment. 
C) depreciation. 
D) depletion.

Question 7

Asset retirement costs are added to the cost of the asset.

Accepted Answer

A) True 
 B)False

Question 8

The carrying amount of an asset is the difference between the

Accepted Answer

A) replacement cost of the asset and its historical cost. 
B) cost of the asset and the amount of depreciation expense for the year. 
C) cost of the asset and the accumulated depreciation to date. 
D) proceeds received from the sale of the asset and its original cost. 
A) replacement cost of the asset and its historical cost. 
B) cost of the asset and the amount of depreciation expense for the year. 
C) cost of the asset and the accumulated depreciation to date. 
D) proceeds received from the sale of the asset and its original cost.

Question 9

While depreciation is a required expense on the financial statements, Capital Cost Allowance is an optional deduction for tax purposes.

Accepted Answer

A) True 
 B)False

Question 10

Goodwill

Accepted Answer

A) can be recorded when generated internally. 
B) can be subdivided and sold in parts. 
C) can only be identified with the business as a whole. 
D) need not be tested annually for impairment. 
A) can be recorded when generated internally. 
B) can be subdivided and sold in parts. 
C) can only be identified with the business as a whole. 
D) need not be tested annually for impairment.

When an asset is retired, a gain or loss must be recorded.

Which of the following is included in the cost of constructing a building?

In calculating depreciation, residual value is

Which statement is correct regarding the use of the cost model and the revaluation model?

The cost of successfully defending a patent in an infringement suit should be

The cost allocation of an intangible asset is referred to as

Asset retirement costs are added to the cost of the asset.

The carrying amount of an asset is the difference between the

While depreciation is a required expense on the financial statements, Capital Cost Allowance is an optional deduction for tax purposes.

Goodwill

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters

Exam 9: Reporting and Analyzing Long-Lived Assets

When an asset is retired, a gain or loss must be recorded.

Which of the following is included in the cost of constructing a building?

In calculating depreciation, residual value is

Which statement is correct regarding the use of the cost model and the revaluation model?

The cost of successfully defending a patent in an infringement suit should be

The cost allocation of an intangible asset is referred to as

Asset retirement costs are added to the cost of the asset.

The carrying amount of an asset is the difference between the

While depreciation is a required expense on the financial statements, Capital Cost Allowance is an optional deduction for tax purposes.

Goodwill

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters