2)On 1 January 2020, Shine Enterprises purchased a land for OMR 200,000.00. In 2021, the current market value of the land is OMR450,000.00. However, the business continues to report the land at OMR 200,000.00. This is justified under which of the following concept?

Select one:

a. None of the above.

b. Historical cost concept.

c. Money measurement.

d. Time interval.

e. Matching concept.

3)Muscat Company purchased an equipment for OMR 5,000 on December 1. It is estimated that annual depreciation on the equipment will be OMR 960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

Select one:

a. None of the answers are correct

b. Depreciation Expense...................................................... 960

Accumulated Depreciation Equipment ................ 960

c. No entry is required.

d.

Depreciation Expense...................................................... 80

Accumulated Depreciation Equipment ................ 80

e. Equipment........................................................................ 5,000

Accumulated Depreciation Equipment ................ 5,000

f. Depreciation Expense,..................................................... 4,040

Accumulated Depreciation Equipment ................ 4,040

:+ = The following expenses and loss were among those incurred by Muscat Company during 2019: Items Value Rent for office space OMR 660,000 55,000 Loss on sale of office furniture Interest expense 132,000 352,000 Depreciation on the office Equipment Freight-out 70,000 One-half of the rented premises is occupied by the sales department. How much of the items listed above should be classified as general and administrative expenses in Muscat's income statement for 2019? :+ One-half of the rented premises is occupied by the sales department. How much of the items listed above should be classified as general and administrative expenses in Muscat's income statement for 2019? Select one: a. OMR 939,000 b. OMR 869,000 C. OMR 884,000 O d. OMR 682,000 e. None of the answers are correct Previous page Next page