Question 1

What is the "recoverable amount"?

Accepted Answer

A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The lower of an asset's fair value less costs to sell and its value in use. 
A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The lower of an asset's fair value less costs to sell and its value in use.

Question 2

Based on the following information,what is the impairment amount to be recorded?

Accepted Answer

A) $0 
B) $10,000 
C) $15,000 
D) $20,000 
A) $0 
B) $10,000 
C) $15,000 
D) $20,000

Question 3

Where are gains and losses on agricultural activity reported in the financial statements?

Accepted Answer

A) Gains are recorded through profit and loss,but losses should be recorded in other comprehensive income. 
B) Losses are recorded through profit and loss,but gains should be recorded in other comprehensive income. 
C) Gains and losses are recorded through profit and loss,and nothing should be recorded in other comprehensive income. 
D) Gains and losses are recorded in other comprehensive income,and nothing should be recorded through profit and loss. 
A) Gains are recorded through profit and loss,but losses should be recorded in other comprehensive income. 
B) Losses are recorded through profit and loss,but gains should be recorded in other comprehensive income. 
C) Gains and losses are recorded through profit and loss,and nothing should be recorded in other comprehensive income. 
D) Gains and losses are recorded in other comprehensive income,and nothing should be recorded through profit and loss.

Question 4

Which of the following is correct with respect to the "impairment loss under the revaluation model"?

Accepted Answer

A) All impairment losses flow through the income statement under ASPE. 
B) All impairment losses flow through the income statement under IFRS. 
C) All impairment losses flow through the revaluation surplus account under ASPE. 
D) All impairment losses flow through the revaluation surplus account under IFRS. 
A) All impairment losses flow through the income statement under ASPE. 
B) All impairment losses flow through the income statement under IFRS. 
C) All impairment losses flow through the revaluation surplus account under ASPE. 
D) All impairment losses flow through the revaluation surplus account under IFRS.

Question 5

Explain how non-current assets that are part of a discontinued operation should be accounted for.

Accepted Answer

•Enterprises that have disposed of,or pl

Question 6

Which statement is not correct?

Accepted Answer

A) Biological assets are living animals or plants. 
B) Biological assets are associated with agricultural activities. 
C) Agricultural produce is the product of biological assets. 
D) Agricultural produce is associated with post-harvest activities. 
A) Biological assets are living animals or plants. 
B) Biological assets are associated with agricultural activities. 
C) Agricultural produce is the product of biological assets. 
D) Agricultural produce is associated with post-harvest activities.

Question 7

What is "agricultural activity"?

Accepted Answer

A) The harvested product of biological assets. 
B) A living animal or plant. 
C) The transformation of biological assets. 
D) Planting,harvesting and marketing produce. 
A) The harvested product of biological assets. 
B) A living animal or plant. 
C) The transformation of biological assets. 
D) Planting,harvesting and marketing produce.

Question 8

What are "costs of disposal"?

Accepted Answer

A) The incremental costs directly attributable to the disposal of an asset. 
B) The incremental costs directly attributable to the disposal of an asset,excluding finance costs and income tax expense. 
C) The incremental costs directly attributable to the disposal of an asset,excluding finance costs. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties. 
A) The incremental costs directly attributable to the disposal of an asset. 
B) The incremental costs directly attributable to the disposal of an asset,excluding finance costs and income tax expense. 
C) The incremental costs directly attributable to the disposal of an asset,excluding finance costs. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties.

Question 9

Based on the following information,what is the net amount that this equipment should be reported at in the balance sheet at December 31,2018?

Accepted Answer

A) $230,000 
B) $240,000 
C) $250,000 
D) $270,000 
A) $230,000 
B) $240,000 
C) $250,000 
D) $270,000

Question 10

Wilson Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $40,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much would be booked to accumulated depreciation in the year subsequent to the revaluation?

Accepted Answer

A) $8,000 credit. 
B) $8,000 debit. 
C) $16,000 credit. 
D) $16,000 debit. 
A) $8,000 credit. 
B) $8,000 debit. 
C) $16,000 credit. 
D) $16,000 debit.

Question 11

The following information is available about George Inc's discontinued operations:
 
What single amount will be presented on George's statement of comprehensive income?

Accepted Answer

A) $1,400,000 
B) $1,500,000 
C) $1,600,000 
D) $1,700,000 
A) $1,400,000 
B) $1,500,000 
C) $1,600,000 
D) $1,700,000

Question 12

Wilson Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $20,000.Assuming this is the first year of using the revaluation model,what amount would be booked to the "other comprehensive income" account if Wilson chooses to use the proportional method to record the revaluation?

Accepted Answer

A) $0 
B) $30,000 debit. 
C) $30,000 credit. 
D) $60,000 debit. 
A) $0 
B) $30,000 debit. 
C) $30,000 credit. 
D) $60,000 debit.

Question 13

Which statement is correct?

Accepted Answer

A) Vines are biological assets until they are converted to juice. 
B) Vines are biological assets until they are converted to wine. 
C) Trees are biological assets until they are converted to logs. 
D) Trees are biological assets until they are converted to lumber. 
A) Vines are biological assets until they are converted to juice. 
B) Vines are biological assets until they are converted to wine. 
C) Trees are biological assets until they are converted to logs. 
D) Trees are biological assets until they are converted to lumber.

Question 14

Wilson Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $40,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much depreciation expense would be recorded in the year subsequent to the revaluation?

Accepted Answer

A) 8,000 credit. 
B) 8,000 debit. 
C) 16,000 credit. 
D) 16,000 debit. 
A) 8,000 credit. 
B) 8,000 debit. 
C) 16,000 credit. 
D) 16,000 debit.

Question 15

Which of the following is correct with respect to the accounting for "investment properties"?

Accepted Answer

A) Under ASPE,either the cost or fair value model may be used. 
B) Under IFRS,either the cost or fair value model may be used. 
C) Under ASPE,either the revaluation or fair value model may be used. 
D) Under IFRS,either the revaluation or fair value model may be used. 
A) Under ASPE,either the cost or fair value model may be used. 
B) Under IFRS,either the cost or fair value model may be used. 
C) Under ASPE,either the revaluation or fair value model may be used. 
D) Under IFRS,either the revaluation or fair value model may be used.

Question 16

On December 31,2018,CA Inc.had a machine with an original cost of $20,000 and accumulated depreciation of $5,000.An impairment test on that date indicated that the machine had a value in use of $12,000 and a fair value of $10,000 (no disposal costs).What impairment loss is recorded for fiscal 2018?

Accepted Answer

A) $3,000 
B) $5,000 
C) $8,000 
D) $10,000 
A) $3,000 
B) $5,000 
C) $8,000 
D) $10,000

Question 17

What is the recoverable amount for this product line?

Accepted Answer

A) $100,000 
B) $4,000,000 
C) $4,100,000 
D) $5,000,000 
A) $100,000 
B) $4,000,000 
C) $4,100,000 
D) $5,000,000

Question 18

Based on the following information,what is the net amount that this equipment should be reported at on FlexiHose's balance sheet at December 31,2018?

Accepted Answer

A) $220,000 
B) $230,000 
C) $240,000 
D) $250,000 
A) $220,000 
B) $230,000 
C) $240,000 
D) $250,000

Question 19

Wilson Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $140,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

Accepted Answer

A) $40,000 debit. 
B) $40,000 credit. 
C) $60,000 debit. 
D) $140,000 credit. 
A) $40,000 debit. 
B) $40,000 credit. 
C) $60,000 debit. 
D) $140,000 credit.

Question 20

When does agricultural activity end?

Accepted Answer

A) To the point just before harvest. 
B) To the point of harvest. 
C) To the point of sale to wholesaler. 
D) To the point of sale to final customer. 
A) To the point just before harvest. 
B) To the point of harvest. 
C) To the point of sale to wholesaler. 
D) To the point of sale to final customer.

What is the "recoverable amount"?

Based on the following information,what is the impairment amount to be recorded?

Where are gains and losses on agricultural activity reported in the financial statements?

Which of the following is correct with respect to the "impairment loss under the revaluation model"?

Explain how non-current assets that are part of a discontinued operation should be accounted for.

Which statement is not correct?

What is "agricultural activity"?

What are "costs of disposal"?

Based on the following information,what is the net amount that this equipment should be reported at in the balance sheet at December 31,2018?

The following information is available about George Inc's discontinued operations: What single amount will be presented on George's statement of comprehensive income?

Which statement is correct?

Which of the following is correct with respect to the accounting for "investment properties"?

On December 31,2018,CA Inc.had a machine with an original cost of $20,000 and accumulated depreciation of $5,000.An impairment test on that date indicated that the machine had a value in use of $12,000 and a fair value of $10,000 (no disposal costs).What impairment loss is recorded for fiscal 2018?

What is the recoverable amount for this product line?

Based on the following information,what is the net amount that this equipment should be reported at on FlexiHose's balance sheet at December 31,2018?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $140,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

When does agricultural activity end?

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Revenue and Recognition

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Filters

Exam 10: Applications of Fair Value to Non-Current Assets

What is the "recoverable amount"?

Based on the following information,what is the impairment amount to be recorded?

Where are gains and losses on agricultural activity reported in the financial statements?

Which of the following is correct with respect to the "impairment loss under the revaluation model"?

Explain how non-current assets that are part of a discontinued operation should be accounted for.

Which statement is not correct?

What is "agricultural activity"?

What are "costs of disposal"?

Based on the following information,what is the net amount that this equipment should be reported at in the balance sheet at December 31,2018?

The following information is available about George Inc's discontinued operations: What single amount will be presented on George's statement of comprehensive income?

Which statement is correct?

Which of the following is correct with respect to the accounting for "investment properties"?

On December 31,2018,CA Inc.had a machine with an original cost of $20,000 and accumulated depreciation of $5,000.An impairment test on that date indicated that the machine had a value in use of $12,000 and a fair value of $10,000 (no disposal costs).What impairment loss is recorded for fiscal 2018?

What is the recoverable amount for this product line?

Based on the following information,what is the net amount that this equipment should be reported at on FlexiHose's balance sheet at December 31,2018?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $140,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

When does agricultural activity end?

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Revenue and Recognition

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Filters