Reference no: EM132623599

Problem 1: An impairment loss occurs when:

Option a) the asset has a residual value of zero.

Option b) the carrying amount of an asset exceeds the recoverable amount.

Option c) the recoverable amount of an asset exceeds the carrying amount.

Option d) the recoverable amount of an asset exceeds its initial cost.

Problem 2: In the context of control, relevant activities are:

Option a) activities of the investor that are similar to the investee's activities.

Option b) activities of the investor that significantly affect the investor's returns

Option c) activities of the investor that significantly affect the investee's returns.

Option d) activities of the investee that significantly affect the investee's returns.

Problem 3: Costs that may be included in the cost of acquisition of property, plant and equipment assets include:

Option a)Site preparation (yes or no)

Option b)Initial delivery and handling costs (yes or no)

Option c)Installation and assembly costs (yes or no)

Option d)Testing whether the asset is functioning (yes or no)