1. Which of the following is a NOT characteristic of property, plant and equipment (PPE)?

A) PPE have fixed and determinable future cash flows.

B) PPE are held for use in the ordinary course of business.

C) PPE benefit more than one year.

D) PPE are tangible asset items

2. Which of the following is a difference between intangible assets and property, plant and equipment (PPE)?

A) PPE benefit more than one year.

B) Intangibles lack physical substance.

C) Intangible assets are generally identifiable.

D) Intangibles are held for use in the ordinary course of business.

3. Which statement is correct?

A) The development phase includes generating new ideas or searching for new materials.

B) Capitalization of costs ceases when the post development phase begins.

C) The post development phase includes designing, constructing or testing a prototype.

D) The project must meet IAS 38 criteria before research costs can be capitalized.

4. What is "fair value"?

A) The present value of the future cash flows expected to be derived from an asset.

B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal.

C) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable, willing parties.

D) The higher of an asset's fair value less costs to sell and its value in use.