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Why is depreciation added to Net CAPEX? A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX с To reflect the economic value of the fixed assets

Which option is correct?

In determining the value in use, which of the following cash flow is excluded from the computation? I. Income tax receipts or payments. II. Net cash flows received or paid on the disposal of the asset at the end of its useful life in an arm's length transaction which is after using the asset. III. Future costs of improving or enhancing the asset's performance.

Multiple choice 1 and 2 1.It is the present value of estimated future cash flows expected to arise from the continuing use of an asset (or CGU) and from its disposal at the end of its useful life. Use in value                                       Recoverable amount Fair value less costs to sell   Value in use   2.The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed as the difference between the recoverable amount on date of reversal and the carrying amount on date of reversal the difference between the recoverable amount on date of reversal and carrying amount of the asset had no impairment loss been recognized previously the difference between the carrying amount of the asset had no impairment loss been recognized previously and the carrying amount of the asset on the date of reversal the difference between the carrying amount of the asset had no impairment loss been recognized previously and the recoverable amount on the date of…

VIOving nanges to this answer. nsanh Question 4 A gain on the sale of a long-term asset is recorded when cash proceeds are: a. less than the book value of the assets sold. b. less than the historical cost of the asset sold. C. less than the accumulated depreciation. d. greater than the book value of the asset sold.

As compared to capitalizing a cash expenditure, what is the initial effect on asset turnover of immediately expensing the expenditure, all else equal?  Asset turnover is:

The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The allocated cost of using the asset for the year. B) The fair market value of the assets. C) The historical cost of the assets D) The cost of the assets not yet expensed on the income statement. The gain or loss from selling an asset reported on the income statement is computed as: A) The difference in the cash received and the historical cost of the assets B) The difference in the fair market value of the asset and the historical cost of the asset. C) The difference in the amount of cash received for the asset less the cost to sell the D) The difference in the book value o f the asset and the cash received for the asset

When assets that have been sold and accounted for by the installment method are subsequently repossessed and returned to incentory, they should be recorded on the books at a. net realizable value b. net realizable value minus normal profit c. the amount of the installment receivable less associated deferred gross profit d. selling price

Under the impairment of assets, value-in-use is *   a. The undiscounted present value of future cash flows arising from the continuing use of the asset and from its disposal. b. The discounted present value of future cash flows arising from the continuing use of the asset and from its disposal. c. The higher of an asset's fair value less cost to sell and its market value d. The amount at which the asset is recognized in the statement of financial position

Which of the following is excluded when projecting future cash flows for the purpose of determining an asset’s value in use? a. Revenues to be derived from the continuing use of the assetb. Residual value of the assetc. Costs of future improvements on the assetd. Disposal costs of the assetPLEASE ADD REFERENCE OR CITATION

1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…

1. Inventory should be stated at (a) Lower of cost and fair value. (b) Lower of cost and net realizable value. (c) Lower of cost and nominal value. (d) Lower of cost and net selling price. 2. Which of the following costs of conversion cannot be included in cost of inventory? (a) Cost of direct labor. (b) Factory rent and utilities. (c) Salaries of sales staff (sales department shares the building with factory supervisor). (d) Factory overheads based on normal capacity. 3. Inventories are assets (a) Used in the production or supply of goods and services for administrative purposes. (b) Held for sale in the ordinary course of business. (c) Held for long-term capital appreciation. (d) In the process of production for such sale. (e) In the form of materials or supplies to be consumed in the production process or the rendering of services. (f) Choices b and d. (g) Choices b, d, and e. 4. The cost of inventory should not include (a) Purchase price. (b) Import duties and other taxes. (c)…

The difference between book value of the asset with the proceeds receive from its sale, with result in?

Ma ic Calendar My MCBS Library English (en) - Assets acquired in a lump-sum purchase are valued based on: a. Their assessed valuation. b. Their relative fair values. c. The present value of their future cash flows. d. Their cost plus the difference between their cost and fair values.

Which of the following statements is true for historical cost valuations? (Select one or more)   a. Present value of cash flows using historical interest rates is an item in which cash receipts or cash payments will occur over time, these future cash flows are then discounted at the interest rate in effect at the time of the initial transaction. Balance sheet examples include notes receivable and notes payable.   b. Acquisition cost is the amount paid initially to acquire the asset, examples include prepayments, land, and intangibles with indefinite lives.   c. Acquisition cost is the amount paid initially to acquire the asset, examples include amounts invested in research and development for intellectual property.   d. Adjusted acquisition cost is the amount paid initially to acquire an asset less accumulated depreciation and amortization, examples include equipment and intangible assets with limited lives.

Which of the following statements is correct with respect to the sale of a depreciable asset? Multiple Choice A gain occurs when the selling price exceeds book value. A sale for a gain results in a decrease in total assets. A sale for a loss results in an increase in total assets. A loss occurs when the selling price is more than book value.

Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.

Which of the following is not added to net income as an adjustment to reconcile net income to cash from operating activities in the statement of cash flows?   A. Increase in deferred tax asset B. Increase in an accrued liability C. Loss on sale of operational asset D. Amortization of discount on bond payable