1. Directly attributable costs include: I. Interest Expense when the asset is ready for use II. Value-added taxes, the entity is not VAT-registered a. I only b. II only c. Both I and II d. Neither I nor II 2. Computation of maximum dividend of wasting asset corporations include the following, except: I. Appropriated retained earnings II. Realized portion of accumulated depletion a. I only b. II only c. I and II d. None from I and II PLEASE ANSWER ITH REFERENCE

1. Directly attributable costs include: I. Interest Expense when the asset is ready for use II. Value-added taxes, the entity is not VAT-registered a. I only b. II only c. Both I and II d. Neither I nor II 2. Computation of maximum dividend of wasting asset corporations include the following, except: I. Appropriated retained earnings II. Realized portion of accumulated depletion a. I only b. II only c. I and II d. None from I and II PLEASE ANSWER ITH REFERENCE

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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When accounting for self-constructed PPE and computing the amount of interest cost to be capitalized, the concept of "avoidable interest" refers to а. that portion of average accumulated expenditures on which no interest cost was incurred O b. that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made O c. the total interest cost actually incurred d. a cost of capital charge for equity
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_______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected to be used…
Under PFRS 9, a financial asset shall be measured subsequently at amortized cost when: I. The business model of the entity is to hold the financial asset in order to collect contractual cash flows on specifies dates. II. The contractual cash flows are solely payment of principal and interest on the principal amount outstanding. O Il only Both I anf II O Either I orll O lonly Next
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1. On derecognition of a financial asset , the difference between the consideration received and the carrying amount of the financial asset shall be: 2 points a. Recognized in other comprehensive income for financial asset at amortized cost and profit or loss for financial asset at fair value. b. Recognized in profit or loss only for financial asset measured at amortized cost. c. Recognized in profit or loss only for financial asset measured at fair value. d. Recognized in profit or loss for both financial asset at fair value and financial asset at amortized cost. 2. The entity purchased government bonds. The entity’s business model in managing financial assets is to collect contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. Which of the following is the most appropriate classification for the investment in bonds? 2 points a. At fair value through profit or loss. b. At amortized cost.…
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