Reference no: EM132782885

Question 1: The differences in valuing inventories between GAAP and IFRS is LIFO. Why did LIFO is prohibited under IFRS?

Select one:

a. It is too old to be relevant

b. It does not reflect the historical cost concepts

c. It gives tax burden to the companies

d. It cause a huge debts to companies

Question 2: Below are the different type of accounting changes. Which one is NOT true?

Select one:

a. Changes in reporting entity

b. Changes in accounting method

c. Changes in accounting estimates

d. Changes in accounting principle

Question 3: The cost of inventories may not be recoverable for the below inventories, except:

Select one:

a. damaged

b. inflation

c. obsolete

d. selling price have declined

Question 4: Below are the examples of internally generated assets that are prohibited from recognition except:

Select one:

a. Customer base

b. Market share

c. Training programmes

d. Developed a system

Question 5: A biological asset is measured at its fair value less cost to sell.

Select one:

True

False

Question 6: Self-constructed assets are assets built by the business entity itself to ensure that no wastages occur in the company.

Select one:

True

False

Question 7: Paid engineers salaries who involved in research and development activities is an expense and cannot be capitalised to the product.

Select one:

True

False