Question 1

An intangible asset is identifiable if it

Response: A or B

Edit
Question 2
Which of the following is an indicator of control?

Response: All of these

Edit
Question 3
If it is not clear whether an expenditure is a research or a development cost, it is treated as
development cost

Response: False

Edit
Question 4
Government entities normally assign their intangible assets a residual value of 5% of cost.

Response: False

Edit
Question 5
An essential element of agricultural activity is the management of biological transformation of
biological assets

Response: True

Edit
Question 6
If there are more than one (1) active markets for a biological asset, the entity shall use the price in
the market expected to be used when determining fair value.

Response: True

Edit
Question 7
Which of the following is most likely not an intangible asset?

Response: Customer list

Edit
Question 8
Living animals and plants are always accounted for as biological assets.

Response: False

Edit
Question 9
Entity A’s dairy cattle gave birth to a calf. The fair value less cost to sell of a new born calf is
P10,000. Entity A recognizes a gain of P10,000 from the initial recognition of the calf.

This study source was downloaded by 100000843081176 from CourseHero.com on 03-27-2022 03:53:44 GMT -05:00

https://www.coursehero.com/file/94963281/jumbohtodogpdf/
 Response: True

Edit
Question 10
A loss can arise from the initial measurement of a biological asset.

Response: True

Edit
Question 11
Subsequent expenditures on recognized intangible assets are generally expensed unless it is
clear that the expenditures meet the recognition criteria for intangible assets.

Response: True

Edit
Question 12
Which of the following instances is an asset not considered to be identifiable?

Response: The asset can only be transferred if the entity is liquidated.

Edit
Question 13
Entity A acquires a biological asset for P100, equal to fair value, and incurs transaction costs of
P10 on the purchase. If the asset’s cost to sell is P20, Entity A will recognize a loss of P30 on the
initial recognition of the purchased asset.

Response: True

Edit
Question 14
For subsequent measurement, government entities classify intangible assets into those with finite
and indefinite useful life.

Response: True

Edit
Question 15
Fair value is quoted price in an active market less transaction costs.

Response: True

Edit
Question 16
Which of the following is not one of the essential elements of an intangible assets?

Response: Held for use in the production or supply of goods

Edit
Question 17
An entity determines an indication of impairment for this intangible asset with carrying amount of
P100. The entity calculates the fair value less cost to sell of P90 and a value in use of P105. The
impairment loss is P5.

Response: False
This study source was downloaded by 100000843081176 from CourseHero.com on 03-27-2022 03:53:44 GMT -05:00

https://www.coursehero.com/file/94963281/jumbohtodogpdf/
 Edit
Question 18
According to the GAM for NGAs, a biological asset is

Response: A living animal or plant

Edit
Question 19
Which of the following is most likely to be recognized as intangible asset by a government entity?

Response: Development costs incurred in internally generating a patent

Edit
Question 20
Government entities amortize all of their intangible assets over a period of 2-10 years, unless a
more appropriate estimate of useful life is available.

Response: True

Edit
Question 21
The common feature of agricultural activities includes all of the following except.

Response: Wind of change

Edit
Question 22
Entity A recognizes a gain of P100 from the change in FVLCS of its biological assets during the
period. If the change in FVLCS due to price change is P70, the change in FVLCS due to physical
change must be P40.

Response: False

Edit
Question 23
Biological assets are initially and subsequently measured at fair value less cost to sell.

Response: True

Edit
Question 24
Agricultural produce after the point of harvest is accounted for as

Response: Inventory

Edit
Question 25
Which of the following is a biological asset?

Response: Trees in a plantation forest

Edit
Question 26
Agricultural produce is measured at fair value less costs to sell only at the point of harvest.
This study source was downloaded by 100000843081176 from CourseHero.com on 03-27-2022 03:53:44 GMT -05:00

https://www.coursehero.com/file/94963281/jumbohtodogpdf/
 Response: True

Edit
Question 27
According to the GAM for NGAs, government entities shall use this measurement model in
subsequently measuring intangible assets.

Response: Cost model

Edit
Question 28
Subsequent expenditures on recognized intangible assets are

Response: Generally expensed, unless they meet the definition of an intangible asset and the
asset recognition criteria

Edit
Question 29
The development cost of an internally generated intangible asset may be capitalized if certain
conditions are met.

Response: True

Edit
Question 30
A purchased intangible asset is initially measured at

Response: Cost

Edit
Question 31
The amortization of an intangible asset is credited directly to the intangible asset account,
according to the GAM for NGAs.

Response: False

Edit
Question 32
A government entity acquires an intangible asset with indefinite useful life for P100. Assuming the
entity uses the maximum amortization period for intangible assets under the GAM for NGAs, the
appropriate annual amortization expense on the intangible asset is P10.

Response: False

Edit
Question 33
The default amortization method for intangible assets with finite useful life is

Response: Straight line method

Edit
Question 34
A government entity does not amortize intangible asset

This study source was downloaded by 100000843081176 from CourseHero.com on 03-27-2022 03:53:44 GMT -05:00

https://www.coursehero.com/file/94963281/jumbohtodogpdf/
 Response: False

Edit
Question 35
According to the GAM for NGAs, if there is no active market for a biological asset.

Response: The entity shall estimate the market price using the guidance set forth in the GAM for
NGAs

This study source was downloaded by 100000843081176 from CourseHero.com on 03-27-2022 03:53:44 GMT -05:00

https://www.coursehero.com/file/94963281/jumbohtodogpdf/
Powered by TCPDF (www.tcpdf.org)