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Question 1) Which of the following is included in the cost of constructing a building? Insurance costs during construction The purchase of the delivery truck
Question 1) Which of the following is included in the cost of constructing a building?
- Insurance costs during construction
- The purchase of the delivery truck used to deliver construction materials
- Cost of repairing vandalism damage during construction
- Cost of removing the demolished building existing on the land when it was purchased
Question 2 : Which of the following is an investing activity?
- Payment of dividends
- Purchase of inventory for cash
- Purchase of equipment for cash
- Purchase of company shares
Question 3: Capitalising an expenditure rather than recording it as an expense:
- Impacts the amount of total comprehensive income reported during an accounting period, but has no effect on the total carrying amount of non- current assets on the statement of financial position
- Impacts the total carrying amount of non-current assets on the statement of financial position, but has no effect on the amount of total comprehensive income reported during the accounting period
- Impacts the total carrying amount of non-current assets reported on the statement of financial position and the amount of total comprehensive income reported during a period
- Has no impact on the carrying amount of non-current assets on the statement of financial position or the amount of income reported on the statement of comprehensive income
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