Reference no: EM132815575

Question 1: Exchange has a commercial substance when the exchange result in the difference in future cash flows.

True False

Question 2: Assets are classified as noncurrent if the assets are reasonably expected to be realize in cash or consume beyond the normal operating cycle.

True

False

Question 3: Lower of cost and net realizable value gives the lowest valuation if applied to individual item of inventory.

True

False

Question 4: The cost of abnormal amounts of wasted materials is not included in the cost of self-constructed assets.

True

False

Question 5: The asset is cash or cash equivalent restricted to settle a liability for more than twelve months after the reporting period is classify as current assets.

True

False

Question 6: Professional fee arising directly from the acquisition of property and equipment are recognized as expense immediately.

True

False

Question 7: The amount of any writedown of inventory to net realizable value and all losses of inventory should be recognized as operating expense in the period the writedown or loss occurs.

True

False

Question 8: An excess of equity over current assets is equal to liabilities.

True

False

Question 9: LCNRV should always be equal to net realizable value

True

False

Question 10: An asset is not depreciated even if the fair value exceeds carrying amount.

True

False