10/10/2022, 22:14 Final Quiz 2: Attempt review

Started on Monday, 10 October 2022, 9:52 PM

State Finished
Completed on Monday, 10 October 2022, 10:13 PM
Time taken 21 mins 38 secs
Marks 8.00/10.00
Grade 80.00 out of 100.00

Question 1

Correct

Mark 1.00 out of 1.00

Impaired assets held for disposal should be reported at the lower of cost or net realizable value.

Select one:
a. False
b. True

Question 2
Correct

Mark 1.00 out of 1.00

When the revaluation surplus is realized because of the use of the asset by the enterprise or disposal of the asset, it may be transferred directly
to

Select one:
a. Deferred income
b. Donated capital
c. Retained earnings
d. Income

Question 3
Incorrect

Mark 0.00 out of 1.00

In order for a non-current asset to be classified as held for sale, the sale must be highly probable. "Highly probable" means that

Select one:
a. The future sale is more likely than not to occur. 
b. The probability is higher than more likely than not.
c. The future sale is likely to occur.
d. The sale is certain.

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10/10/2022, 22:14 Final Quiz 2: Attempt review

Question 4

Correct

Mark 1.00 out of 1.00

If an impairment of property, plant and equipment is indicated, any impairment loss is recorded at an amount equal to the

Select one:
a. Excess of the carrying amount over the discounted net cash flows from the asset, regardless of the fair value of the asset.
b. Excess of the carrying amount over the fair value of the asset regardless of the discounted net cash flows from the asset.
c. Excess of the carrying amount over the recoverable amount of the asset
d. Excess of the recoverable amount of the carrying amount of the asset

Question 5

Correct

Mark 1.00 out of 1.00

The declining-balance method does not deduct the salvage value in computing the depreciation base.

Select one:
a. True
b. False

Question 6
Correct

Mark 1.00 out of 1.00

An entity shall classify a noncurrent asset or disposal group as "held for sale" when

Select one:
a. the carrying amount of the asset or disposal group will be recovered through continuing use.
b. The noncurrent asset or disposal group is to be abandoned.
c. the carrying amount of the asset or disposal group will be recovered through a sale transaction.
d. The noncurrent asset or disposal group is idle or retired from active use.

Question 7

Correct

Mark 1.00 out of 1.00

Revaluation surplus account is reported as

Select one:
a. a separate component of stockholders' equity
b. a liability
c. a contra-asset account
d. a separate component of income from continuing operations

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10/10/2022, 22:14 Final Quiz 2: Attempt review

Question 8

Correct

Mark 1.00 out of 1.00

Under IFRS, when an entity chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the
following statements is correct?

Select one:
a. Increases in an asset's carrying value as a result of the first revaluation must be recognized as a component of profit or loss
b. When an asset is revalued, the entire class of property, plant, and equipment to which that asset belongs must be revalued.
c. When an asset is revalued, individual assets within a class of property, plant, and equipment to which that asset belongs can be
revalued.
d. Revaluations of property, plant, and equipment must be made at least every three years.

Question 9
Incorrect

Mark 0.00 out of 1.00

Vair Company owns a copyright. A material amount of legal fees and other costs it incurred in successfully defending a copyright suit should
be

Select one:
a. Capitalized as part of the cost of the copyright and amortized over the remaining estimated useful life of the copyright, not to 
exceed 40 years.
b. Charged to an expense account in the period incurred.
c. Charged to a loss account in the period incurred.
d. Capitalized in a separate asset account and amortized over 40 years.

Question 10
Correct

Mark 1.00 out of 1.00

An asset meets the identifiability criterion in the definition of an intangible when

I. It is separable, meaning the asset is capable of being separated from the entity and sold, transferred licensed, rented or exchanged.

II. It arises from contractual or other legal rights regardless whether or not those rights are transferable or separable from the entity or from
other rights and obligations.

Select one:
a. I only
b. Neither I nor II
c. II only
d. Both I and II

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10/10/2022, 22:14 Final Quiz 2: Attempt review

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