A. The power to sell the shares of an entity. B. The power to govern the financial and operating policies of an entity. C. The power to participate in the financial and operating policy decisions of the investee. D. The power to thare in strategic decisions affecting an entity. Which of the following is NOT a "class" of intangible assets? A. industrial designs B. computer software C. raw materials D. patents Which transaction would NOT be included in year end inventory? A. Goods received at year end. B. Goods shipped FOB shipping point after year end. C. Goods shipped out on consignment at year end. D. Goods received on consignment at year end. Which of the following is correct about joint operations? A. Equity method of accounting is used for a joint operation. B. Joint operation is not a type of joint arrangernent. C. Proportionate consolidation is used for a joint operation. D. Joint operation is the same as a joint venture. What costs should NOT be capitalized to "equipment"? A. non-refundable sales tax B. refundable sales tax C. transportation and delivery D. interest during construction of equipment What costs are NOT included in the cost of inventories? A. Costs to deliver raw materials to the company. B. Costs to ship goods to customers. C. Labour used to make the finished product. D. The costs of raw materials. Which statement is correct? A. In the development phase, the mineral site is ready for mineral production. B. In the development phase, the mineral site is assessed for commercial viablity. C. In the development phase, the mineral site is assessed for technical viability. D. In the development phase, the six criteria required for capitalization are met. What is a financial asset? A. An asset that does not generate future cash flows. B. An asset arising from contractual agreements on future cash flows. C. Assets such as land and buildings that generate future cash flows. Which statement best explains the weighted average cost flow assumption? A. A method that uses the oldest costs in the calculation of cost of salus. B. A method that uses the cost of goods available for sale divided by fhe number of units available for sale. C. A mothod that assigns costs to inventories and cost of sales based on actual costs of each flem. D. A method that uses the most recent coliss in the calculation of oost of sales. Which financial asset classification best describes the business model that includes acquiring porffolio irvestments wil the insent to trade tham for a profi? A. at tair value through profit or loss B. associale C. anortized coat D. at fair value through other comprehensive income What is the meaning of "significant influence"? A. The power to govern the financial and operating policies of an entity. B. The power to participate in the financial and operating policy decisions of the investee. C. The power to sell the shares of an entity. D. The power to share in strategic decisions aflecting an entity. Which staternent best explains the difference between the retail inventory and gross margin mothods? A. The gross margin muthod essimates cost of goods sold by applying an average gross margin to the amount of sales recorded for the period. B. The retall invertory method estimates ending inventory cost using purchase prices and an average gross margin. C. The retall inventory method estimates cost of goods sold by applying an average groos margin fo the amount of sales recorded far the period. D. The gross margin method estimatis ending invertory cost using retal prices and an average gross margin. Which of the following is a ditlerence between intangible assets and property, plant and equipment (PPE)? A. Intangibles are heid for use in the ordinary course of business. B. Intangibles lack physical substance. C. Intangible assets are generally identifable. D. PPE benefit more than one year. In December 2026, Ami, the owner of Elim, paid for a paroel of tand aiong with a warehouse on behalf of Eint, the registered owner of the property, for a total cost of $700,000. Ami also paid a real estate commission of $35,000 and lega 1ep of $5,000 in connoction with this purchase, plus $25,000 for the demoliton of the warehouse. Elin will 16/26 for these costs in January 2026 and will begin construction of an oflice builing on this land. Prior to the purchase, the land and warehouse were appraised at $500,000 and $200,000, respoctively. How much should be capitalized to the value of the land in 2026 ? A. $0 B. $730,000 C. $505,000 D. 5765,000 What journal entry is required when imventory is purchased under the perpetual inventory system? A. Dr Purchases Cr Accounts payablo B. Dr Inventory Cr Accounts payable C. Dr Cost of goods soid Cr Inventory Cr Purchases D. Dr Cost of goods sold Cr Inventory Under IFRS, what is the acceptable treatment for berrowing costs on a self-constructed property, plant and equipment? A. A company can make a policy choice on the treatment of borrowing costs. B. Capitalce costs of any internal dobt incurred within the corporation. C. Captalize all indirectly attributable borrowing costs and expense the directly attrbutable costs. D. Capitaize costs that would have been avoided it the expenditure had not been made. In 2025, Wavery Corp. set up a new manufacturing facility in Nova Sootia. To encourage Wlaverly to set up its factory, the province provided equipment with a fair value of $250,000, and estimaled residual value of $0, and an estimated useful life of 10 years using straight-line depreciation. What journal entry would be required in fiscal 2027 , using the gross method? A. a credit to depreciation expense for $25,000 B. a eredil to donation revenue of $25,000 C. a credi to other comprehensive income-donated assets of $25,000 D. a credit to other income-governmert grant of 525,000 Fone exchanged similar assets with Simone Company in a transaction with commercial substance. Rene gave up a 212 Cithat a nel book value of $47,000 (fair value $49,000 ) and Simone exchanged equipment with a net. equipmeni? A. $35.000 B. $36.000 C. $47,000 D. 549,000 Which statement is NOT correct about strategic investments? A. Proportionate share of the investee's assets is included in the joint venturer's balance sheet. B. Proportionate consolidation is used for joint ventures because of the presence of joint control. C. The fair value through profit or loss mathod is used for strategic investments. D. Consolidation effectively results in two legal entities being reported as one economic unit. AccountingPro purchased equipment on January 1, 2024, for $275,000. The asset's useful life was estimated at 5 years or 10,000 units of oulput, with no residual value. The company has a Decembar 31 year-end. Assuming the company uses the units-of-production depreciation method, what is the depreciation rate per unit for 2028 ? View the units of oulput. A. $47,500 B. $27.50 C. $25.00 D. $52.250 Soorya Resources incurred the following costs. How much would be capitalized as "intangible assets" under the successful efforts method? View the incurred costs. A. $400,000 B. $500,000 C. $300,000 D. $600.000 Which statement best depicts the inventory cost flow equation? A. Ending inventory + Purchases = Cost of sales + Beginning inventory B. Beginning inventory Purchase returns = Cost of sales + Ending inventory C. Beginning inventory + Goods manufactured = Cost of sales + Ending inventory D. Beginning inventory + Sales = Cost of sales + Ending inventory Which statement is correct? A. Adequate financial resources must exist to complete research activities. B. Under IFRS, all research costs must be expensed as incurred. C. Development activities must be technically feasible. D. Under IFRS, research costs must fulfill six specific criteria. Which statement does NOT describe the "successsful efforts" method? A. A mathod of acoounting that capitalizes costs of mineral exploration and evaluation only if the production is commercially viable. B. A mathod of accounting that capitalizes costs of mineral exploration and evaluation unfil the production is successful. C. A mothod of accounting that capitalizes costs of mineral exploration and evaluation only if the production is technically feasible. D. A mothod of acoounting that capitalzes costs of minoral exploration and evaluation only if the cutcome is subcessful. What is the meaning of "historical cost"? A. The value expected from the sale of an asset, net of any, costs of disposal. B. The value of an asset in an input market or output market on the date of measuremet C. The cost required to replace the productive capacity of an asset. D. The actual cost of an asset at the time it was purchased. Which of the following is NOT a characteristic of a property, plant and equipment (PPE)? A. no physical substance B. identifiable C. provides future cash flows D. non-monetary
