Question 1

According to IFRS 3/AASB 3 purchased goodwill:

Accepted Answer

A)  should be written off immediately on recognition. 
B)  should be written off by a systematic charge against profits using the straight-line method, over a period not exceeding 20 years. 
C)  should remain in the accounts at cost less any accumulated impairment losses. 
D)  should be written off over the useful life of the asset. 
A)  should be written off immediately on recognition. 
B)  should be written off by a systematic charge against profits using the straight-line method, over a period not exceeding 20 years. 
C)  should remain in the accounts at cost less any accumulated impairment losses. 
D)  should be written off over the useful life of the asset.

Question 2

If a computer with a fully depreciated cost of $30 000 is discarded as worthless, the accounting entry to record the scrapping is which of the following?

Accepted Answer

A)  Debit expense on disposal of asset $30 000; credit computer $30 000 
B)  Debit expense on disposal of asset $30 000; credit accumulated depreciation computer $30 000 
C)  Debit accumulated depreciation computer $30 000; credit computer $30 000 
D)  Debit accumulated depreciation computer $30 000; credit computer $30 000; Debit expense on disposal of asset; credit proceeds of disposal of asset $30 000 
A)  Debit expense on disposal of asset $30 000; credit computer $30 000 
B)  Debit expense on disposal of asset $30 000; credit accumulated depreciation computer $30 000 
C)  Debit accumulated depreciation computer $30 000; credit computer $30 000 
D)  Debit accumulated depreciation computer $30 000; credit computer $30 000; Debit expense on disposal of asset; credit proceeds of disposal of asset $30 000

Question 3

Revaluations that occur must be upward or downward from an asset's:

Accepted Answer

A)  carrying amount. 
B)  net realisable value. 
C)  lower of cost and net realisable value. 
D)  original cost. 
A)  carrying amount. 
B)  net realisable value. 
C)  lower of cost and net realisable value. 
D)  original cost.

Question 4

When an asset is sold the gain or loss on disposal is the difference between the:

Accepted Answer

A)  proceeds of sale and the original cost of the asset. 
B)  proceeds of sale and the carrying amount of the asset. 
C)  proceeds of sale and the fair value of the asset. 
D)  original cost and the accumulated depreciation of the asset. 
A)  proceeds of sale and the original cost of the asset. 
B)  proceeds of sale and the carrying amount of the asset. 
C)  proceeds of sale and the fair value of the asset. 
D)  original cost and the accumulated depreciation of the asset.

Question 5

Which pairing of non-current assets and acquisition value does not match?

Accepted Answer

A)  Identifiable intangible assets and cost 
B)  Goodwill and cost of the business combination less the sum of the fair values of the net assets acquired 
C)  Mineral resources and cost 
D)  Biological assets and agricultural produce and cost 
A)  Identifiable intangible assets and cost 
B)  Goodwill and cost of the business combination less the sum of the fair values of the net assets acquired 
C)  Mineral resources and cost 
D)  Biological assets and agricultural produce and cost

According to IFRS 3/AASB 3 purchased goodwill:

If a computer with a fully depreciated cost of $30 000 is discarded as worthless, the accounting entry to record the scrapping is which of the following?

Revaluations that occur must be upward or downward from an asset's:

When an asset is sold the gain or loss on disposal is the difference between the:

Which pairing of non-current assets and acquisition value does not match?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis, Profitability Analysis and Capital Budgeting

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 21: Non-Current Assets: Revaluation, Disposal and Other Aspects

According to IFRS 3/AASB 3 purchased goodwill:

If a computer with a fully depreciated cost of $30 000 is discarded as worthless, the accounting entry to record the scrapping is which of the following?

Revaluations that occur must be upward or downward from an asset's:

When an asset is sold the gain or loss on disposal is the difference between the:

Which pairing of non-current assets and acquisition value does not match?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis, Profitability Analysis and Capital Budgeting

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters