ACC2363_Assignment 8_Q #10 Exchange of Equipment for Furniture of Equal Fair Value

True or False (No need for explanation) 1. Profit on self-construction is not allowed to be recognized in the accounts 2. If the actual construction cost is less than the normal cost of the asset, the profit emerges in the accounts through lesser interest costs throughout the construction period 3. The asset acquired by exchange of non-monetary assets is generally recorded at the fair value of the asset given 4. The asset acquired is recorded at the carrying amount of the asset given up if both the fair value of the asset given up and asset received are not reliably measurable, or if the exchange transaction has commercial substance. 5. The depreciation method should reflect the pattern in which the asset's economic benefits are consumed by the enterprise 6. Under the components approach, each part of an item of PPE with a cost that is significant in relation to the total cost shall be depreciated separately. 7. The useful life of PPE shall be reviewed annually, and if expectations are…

When cash is involved in an exchange having commercial substance _________________. a. a gain or loss is computed by comparing the fair value of the asset received with the fair value of the asset given up b. only gains should be recognized c. gains or losses are recognized in their entirety d. only losses should be recognized

Record the entry to adjust asset values to fair value. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. How do I do this? What part of this is the adjust asset value and what part is the deficit entry

Note: Option A is incorrect. Need correct option

8. If a FVTPL financial asset is bought, the investment account is Multiple-Choice O A. Debited for the cost of the financial asset NOT including any extra expenditures required in making t he purchase O B. Debited for the cost of the financial asset including any extra expenditures required in making the pu rchase O C. Credited for the cost of the financial asset including any extra expenditures required in making the p urchase D. Credited for the cost of the financial asset NOT including any extra expenditures required in making the purchase

Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.

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View Policies Current Attempt in Progress Financing activities involve O cash receipts from sales of goods and services. O long-term liability and owners' equity items. O lending money to other entities and collecting on those loans. O acquiring and disposing of productive long-lived assets. Save for Later Attempts: 0 of 1 used Submit Answer

Ringler Corporation exchanges one plant asset for a similar plant asset and gives cash in the exchange. The exchange is not expected to cause a material change in the future cash flows for either entity. If a gain on the disposal of the old asset is indicated, the gain will A) effectively reduce the amount to be recorded as the cost of the new asset.                                                                                                                 B) be credited directly to the owner's capital account.                                     C) be reported in the Other Revenues and Gains section of the income statement.                                                                                                      D) effectively increase the amount to be recorded as the cost of the new asset.

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What is correct answer for this financial accounting mcq?

Reposting due to incorrect answers given. Help me with both please asap

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(Multiple Choice Question) An impairment loss is recorded when capital asset's   1. net book value is higher than the amount it could likely be sold for   2. market value is higher than its accumulated amortization   3. market value is higher than its net book value   4. net book value is higher than its accumulated amortization

Ringler Corporation exchanges one plant asset for a similar plant asset and gives cash in the exchange. The exchange is not expected to cause a material change in the future cash flows for either entity. If a gain on the disposal of the old asset is indicated, the gain will Group of answer choices A) be reported in the Other Revenues and Gains section of the income statement. B) effectively reduce the amount to be recorded as the cost of the new asset. C) effectively increase the amount to be recorded as the cost of the new asset. D) be credited directly to the owner's capital account.

The book value of an asset is equal to the: a. asset's market value less its historical cost b. book value relied on by secondary markets c. replacement cost of the asset d. asset's cost less accumulated depreciation

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Which statement is incorrect regarding contractual cash flows that are solely payments of principal and interest (SPPI)? a. principal is the fair value of the financial asset at initial recognition b. contractual cash flows that are SPPI on the principal amount outstanding are consistent with a basic lending engagement c. an originated or a purchased financial asset can be a basic lending arrangement only if it is a loan in its legal form d. an entity shall assess whether contractual cash flows are SPPI on the principal amount outstanding for the currency in which the financial asset is denominated

Accounting recognition should be given to the gain realized on a non-monetary exchange of plant assets except when the exchange has Select one: a. commercial substance and additional cash is paid. b. no commercial substance and additional cash is paid. C. All of these cause recognition of a gain. d. commercial substance and additional cash is received.

When an asset is held for sale:   Question 10 options:   the asset is remeasured at the lower of carrying (book) value and fair value less costs to sell.   it must related to discontinued operations.   the company continues to record depreciation on the asset.   the asset is remeasured at the lower of fair value and carrying (book) value. The matching principle is best demonstrated by:   Question 11 options:   measuring expenses correctly.   not recognizing any expenses until some revenue has been received.   recognizing prepaid rent as revenue.   associating effort (expenses) with accomplishment (revenues).

_______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant  influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected to be   used…