Reference no: EM132607129

Question 1: For each of the following multiple-choice questions, select the answer which you think best fits to the question and write the letter of your choice in Block letter on the space provided Specific identification:

A. Must be used under IFRS if the inventory items are not interchangeable.

B. Cannot be used under IFRS.

C. Must be used under IFRS if it would result in the most conservative net income.

D. None of the above

Question 2:  The inventory system that uses accounting records that continuously discloses the amount of inventory is:

A. Periodic

B. Perpetual

C. Physical

D. Retail

E. None of the above

Question 3: Which of the following payments is not included in the cost of land?

A. Removal of old building

B. Back property taxes paid

C. Legal fees

D. Cost of fencing and lighting with limited economic life

None of the above

Question 4: Which depreciation method gives the largest amount of expense in the early? 2years of using the asset and therefore is mostly best for income tax purpose?

A. Straight line

B. Accelerated

C. Units of production

D. All are equal

E. None of the above

Question 5: Capitalization period ends when?

A. Expenditures for the assets are being incurred

B. Activities for readying the asset for use or sale are in progress

C. Interest costs are being incurred

D. The asset is substantially complete and ready for use.

E. None of the above

Question 6: Companies value property, plant, and equipment in subsequent periods using?

A. Cost method

B. Revaluation method

Net realizable method

D. All except C

E. None of the above

Question 7: Actual interest costs' capitalizing considers which one of the following items?

A. Qualifying assets

B. Capitalization period

C. Amount to capitalize

D. All of the above

E. None of the above