Depreciation and Correct Answer
Question 1
1 out of 1 points
Which of the following disclosures are optional under IAS 12?
Selected Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Correct Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Question 2
0 out of 1 points
Which of the following are not examples of directly attributable costs that should be included in the cost of acquisition for property, plant and equipment?
Selected Answer:
a.
Costs of site preparation
Correct Answer:
c.
Costs of opening a new facility
Question 3
1 out of 1 points
Property, plant and equipment are assets that:
Selected Answer:
d.
are tangible in nature
Correct Answer:
d.
are tangible in nature
Question 4
0 out of 1 points
Replicator Limited acquired an item of Plant with an expected useful life of 5 years. Expected total production output over this period was: Year 1, 35 000 units; Year 2, 35 000 units; Year 3, 18 000 units; Year 4, 12 000 units. The asset cost $ 100 000 and associated installation costs amounted to $20 000 and residual value is $5000. The amount of depreciation charged in the first year is:
Selected Answer:
c.
$42 000
Correct Answer:
b.
$40 250
Question 5
0 out of 1 points
If a sale and leaseback transaction results in a finance lease, IAS 17 Leases, provides the following accounting treatment for any excess of sales proceeds over the carrying amount:
Selected Answer:
a.
immediately recognise as income by the seller-lessee
Correct Answer:
c.
defer and amortise over the lease term
Question 6
0 out of 1 points
Which of the following statements is incorrect?
Selected Answer:
c.
Depreciation and interest expenses on finance leases may exceed rental payments and result in lower profits being
1 out of 1 points
Which of the following disclosures are optional under IAS 12?
Selected Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Correct Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Question 2
0 out of 1 points
Which of the following are not examples of directly attributable costs that should be included in the cost of acquisition for property, plant and equipment?
Selected Answer:
a.
Costs of site preparation
Correct Answer:
c.
Costs of opening a new facility
Question 3
1 out of 1 points
Property, plant and equipment are assets that:
Selected Answer:
d.
are tangible in nature
Correct Answer:
d.
are tangible in nature
Question 4
0 out of 1 points
Replicator Limited acquired an item of Plant with an expected useful life of 5 years. Expected total production output over this period was: Year 1, 35 000 units; Year 2, 35 000 units; Year 3, 18 000 units; Year 4, 12 000 units. The asset cost $ 100 000 and associated installation costs amounted to $20 000 and residual value is $5000. The amount of depreciation charged in the first year is:
Selected Answer:
c.
$42 000
Correct Answer:
b.
$40 250
Question 5
0 out of 1 points
If a sale and leaseback transaction results in a finance lease, IAS 17 Leases, provides the following accounting treatment for any excess of sales proceeds over the carrying amount:
Selected Answer:
a.
immediately recognise as income by the seller-lessee
Correct Answer:
c.
defer and amortise over the lease term
Question 6
0 out of 1 points
Which of the following statements is incorrect?
Selected Answer:
c.
Depreciation and interest expenses on finance leases may exceed rental payments and result in lower profits being