Question
ASPE requires that assets must be assessed for indications of impairment at the end of each reporting period. at the end of every quarter. when
ASPE requires that assets must be assessed for indications of impairment
at the end of each reporting period.
at the end of every quarter.
when events and circumstances indicate that asset's carrying amount may not be recoverable.
whenever the method of depreciation has changed.
2.
s
Depreciation should be discontinued when an asset has been
derecognized or taken out of service.
derecognized or classified as held for sale.
taken out of service.
taken out of service or classified as held for sale.
3.
IFRS require that assets must be assessed for indications of impairment
at the end of every quarter.
at the end of each reporting period.
when events and circumstances indicate that asset's carrying amount may not be recoverable.
whenever the method of depreciation has changed.
4.
An expenditure that maintains an existing asset so that it can function in the manner intended should be
partially expensed in the period in which it is made.
fully expensed in the period in which it is made.
partially capitalized in the period in which it is made.
fully capitalized in the period in which it is made.
5.
Which of the following expenditures after acquisition would not be capitalized?
replacing the air conditioning system in an office building
adding a new wing to a hospital
replacing all the tires on an 18-wheel semi-trailer
major overhaul of a fleet of trucks
6.
The costs of land improvements with limited lives, such as a parking lot, are
recorded in a separate account and depreciated over their useful lives.
recorded in a separate account.
depreciated over their useful lives.
added to the land account.
7.
Borrowing costs incurred for the acquisition of assets may be capitalized if certain conditions are met. Which of the following issues is irrelevant in making that determination?
the depreciation period
the avoidable borrowing costs
the capitalization period
whether the asset is a qualifying asset
8.
The three main characteristics of intangible assets are
identifiability, non-physical existence, and nonmonetary nature.
identifiability, physical existence, and separability.
separability, identifiability, and nonmonetary nature.
physical existence, nonmonetary nature, and identifiability.
9.
Which of the following best describes goodwill?
internal value generated by way of a brand image.
the excess of fair value transferred to acquire a business over fair value amounts assigned to identifiable assets.
internal value generated by way of a companys charitable activities and philanthropic acts.
a companys intentions to impact the community and environment in a favourable way.
10.
Examples of property, plant, and equipment include
machinery, livestock, patents.
computers, cherry orchards, copyrights.
equipment, apple trees, mineral resource property.
land, equipment, trademark.
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