ACC2363_Assignment 8_Q #11 Sale of Building

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

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.

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Cash flows relating to asset held for rental to others are classified asA. OperatingB. FinancingC. InvestingD. Either Investing or Operating

Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows. Select one: a. Investing activities section O b. Does not represent a cash flow c Financing activities section O d.Operating activities section

Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all.   Treatments   A. Record the expenditure as an asset and depreciate it. B. Record the expenditure as an asset and amortize it. C. Record the expenditure as an asset and deplete it. D. Record the expenditure as an asset but do not systematically allocate it to expense. E. Record the expenditure as an expense in the current period. F. None of the above is appropriate.   Expenditures   ____ 1. Acquired a truck.   ____ 2. Purchased a copyright from an author.   ____ 3. Paid for minor repairs to a building.   ____ 4. Purchased a producing silver mine.   ____ 5. Paid attorney's fees in acquiring land.   ____ 6. Paid attorney's fees to defend a patent.   ____ 7. Paid prior owner’s real estate taxes in acquiring land.   ____ 8. Paid insurance to transport new equipment to your plant.   ____ 9. Purchased timberlands to establish…

Can you help me with this question with an explanation, please? Thank you :)

Multiple choice   1. The transaction costs of acquiring an investment measured at amortized cost are A. Included in the initial measurement of the investment and amortized to profit or loss using the effective interest method.  B. Initiallt deferred and recognized in profit or loss only when the aaset is derecognized or becomes impaired.  C. Initially deferred and recognized directly in equity when the asset is derecognized or becomes impaired. D. Expensed immediately on acquisition date.    2. An entity acquired 10 year bonds at a premium. The investment is measured at amortized cost . Seven years after the acquisition, the entity sold 90% of the bonds at a discount. Which is the following is true? A. Gain is realized on the sale. B. The remaining 10% should be reclassified out of the amortized cost measument category.  C. Loss is realized on the sale.  D. B and C   3. There are no payments made during the life of this type of bond; both the principal and interest( computed on a…

In an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B. Cash C. Liability D. Any of the given

What is correct answer for this financial accounting mcq?

1._____ is the opposite of a sinking fund. A. Accrual B. Compounding     C. Amortization D. Depreciation   2. A(n) _____ is any loan in which real property is used as security for a debt. A. annuity B. mortgage    C.escrow D.unsecured loan