Question 1

In a period subsequent to a revaluation increment, if the revaluation reverses, the original revaluation should be:

Accepted Answer

A)  added to the revaluation reserve account. 
B)  added to the income statement. 
C)  offset against equity. 
D)  offset against the previous revaluation. 
A)  added to the revaluation reserve account. 
B)  added to the income statement. 
C)  offset against equity. 
D)  offset against the previous revaluation.

Question 2

Match the descriptions with their terms:
-Can be identified only with a business as a whole.

Accepted Answer

A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs 
A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs

Question 3

Additions and improvements:

Accepted Answer

A)  occur frequently during the ownership of a plant asset. 
B)  should be capitalised and depreciated over the remaining useful life of the related PPE asset. 
C)  normally involve immaterial expenditures. 
D)  typically only benefit the current accounting period. 
A)  occur frequently during the ownership of a plant asset. 
B)  should be capitalised and depreciated over the remaining useful life of the related PPE asset. 
C)  normally involve immaterial expenditures. 
D)  typically only benefit the current accounting period.

Question 4

Identify the following expenditures :
-Purchased a wastebasket at a cost of $10.

Accepted Answer

A)  capital expenditures 
B)  revenue expenditures. 
A)  capital expenditures 
B)  revenue expenditures.

Question 5

Indicate whether each of the following expenditures should be classified as:
-Drainage costs

Accepted Answer

A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X). 
A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X).

Question 6

Indicate whether each of the following expenditures should be classified as:
-Cost of lighting for parking lot

Accepted Answer

A) land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X) 
A) land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X)

Question 7

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer:
-Buildings

Accepted Answer

A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N) 
A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N)

Question 8

Indicate whether each of the following expenditures should be classified as:
-Fences

Accepted Answer

A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X). 
A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X).

Question 9

An asset register is:

Accepted Answer

A)  an internal control procedure designed to manage and protect non-current assets. 
B)  a list of the market prices of an entity's assets. 
C)  a list of the maintenance conducted on current assets during the year. 
D)  a schedule of all intangible assets sold during the year. 
A)  an internal control procedure designed to manage and protect non-current assets. 
B)  a list of the market prices of an entity's assets. 
C)  a list of the maintenance conducted on current assets during the year. 
D)  a schedule of all intangible assets sold during the year.

Question 10

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer:
-Land

Accepted Answer

A)  Property, plant and equipment(PP
E)  
B)  Intangibles(I) 
C)  Other(O) 
D)  Not on the statement of financial position(N/
A)  
A)  Property, plant and equipment(PP
E)  
B)  Intangibles(I) 
C)  Other(O) 
D)  Not on the statement of financial position(N/
A)

Question 11

The Tolbert Corporation purchased equipment on 1 January, 2019, for $60,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.
Required: Answer the following independent questions.
1. Calculate the amount of depreciation expense for the year ended 31 December, 2019, using the straight-line method of depreciation.
2. If 16,000 units of product are produced in 2019 and 24,000 units are produced in 2020, what is the carrying amount of the equipment at 31 December, 2020? The company uses the units-of-production depreciation method.

Accepted Answer

The answer of The Tolbert Corporation purchased equipment on 1...

In a period subsequent to a revaluation increment, if the revaluation reverses, the original revaluation should be:

Match the descriptions with their terms: -Can be identified only with a business as a whole.

Additions and improvements:

Identify the following expenditures : -Purchased a wastebasket at a cost of $10.

Indicate whether each of the following expenditures should be classified as: -Drainage costs

Indicate whether each of the following expenditures should be classified as: -Cost of lighting for parking lot

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Buildings

Indicate whether each of the following expenditures should be classified as: -Fences

An asset register is:

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer: -Land

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 8: Reporting and Analysing Non-Current Assets

In a period subsequent to a revaluation increment, if the revaluation reverses, the original revaluation should be:

Match the descriptions with their terms: -Can be identified only with a business as a whole.

Additions and improvements:

Identify the following expenditures : -Purchased a wastebasket at a cost of $10.

Indicate whether each of the following expenditures should be classified as: -Drainage costs

Indicate whether each of the following expenditures should be classified as: -Cost of lighting for parking lot

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Buildings

Indicate whether each of the following expenditures should be classified as: -Fences

An asset register is:

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer: -Land

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters