1) An item of property, plant and equipment was acquired for $250,000 on 120-day terms. At the time of acquisition, which of the following statements regarding the $250,000 is correct? A. It is not a cost, nor an expenditure, nor an expense.

B.It is a cost, but not an expenditure nor an expense.

C.It is a cost and an expense, but not an expenditure.

D.It is a cost and an expenditure, but not an expense.

E.It is an expenditure, but not a cost nor an expense.

2) Which of the following statements relating to recognition and disclosure is correct?

A.Information that is separately disclosed is also recognised.

B.Information that is separately disclosed may not be recognised

C.Information that is recognised is also separately disclosed.

D.Information that is recognised must be separately disclosed, but not all information separately disclosed must be recognised.

E.None of these statements are correct.