accountable entity
Q: Which of the following circumstances will cause sales to fixed assets to be abriprmally low? OA. A…
A: Sales to Fixed Asset is calculated by dividing sales by average fixed assets. It indicates how well…
Q: Which type of expenditure is included in the term "exploration and evaluation" of mineral resources
A: the term exploration and evaluation of mineral resources is search for minerals and entity has…
Q: How do accounting standards and practices vary when accounting for intangible assets, such as…
A: In the realm of accounting, assets are broadly categorized into tangible and intangible assets.…
Q: The manager of your company said that he and his board members do not understand the depreciation of…
A: Depreciation is the gradual decrease of a fixed asset's estimated expense. Buildings, fixtures, and…
Q: 5. Which of the following is an element of cost? a. Cost of employee benefits not directly…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Which cost incurred on equipment does not belong to the group? Freight on acquisition of…
A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…
Q: From the Fundamentals of Oil and Gas Accounting; Which oil and gas assets are subject to impairment…
A: Meaning of Impairment of Asset Impairment implies the permanent decrease or reduction in the value…
Q: It is a circumstance in which the liquidation value of an industry is examined for purposes that are…
A: Any company's liquidation is the process of winding up the business because it has lost money due to…
Q: Explain the situation that a company (in the extractive industry) expenses all exploration and…
A: An entity is required to consider when it has been deciding on its accounting policies for…
Q: ord increases and decreases in the fair value of an investment when accountants do not record…
A: In the case of property, plant and equipment, it has always been seen that they are maintained in…
Q: Which of the following statements regarding IFRS impairment testing for goodwill is false? Group of…
A: The objective of the question is to identify the false statement among the given options related to…
Q: Which of the following is a distinguishing characteristic of a nonbusiness organization? Select…
A: The Non business Organizations are the organizations that are formed and operated for the benefits…
Q: Discuss when a company in the extractive industries needs to start accounting for its restoration…
A: Answer : A company in the extractive industry start accounting for its restoration costs when there…
Q: Intangible assets are certain nonphysical assets used in operations that confer on their owners'…
A: Non current asset: It implies to an asset having an expected useful life of more than a year and is…
Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…
A: The objective of the question is to identify which of the given options is not a part of the…
Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…
A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…
Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…
A: The objective of the question is to identify which of the given options is not a part of the…
Q: Mining, explorations and other similar extractive businesses are naturally and fundamentally…
A: The given statement is partially correct because there are different phases in the operations of…
Q: Inc. purchased 81% of the voting shares of S Inc for $696,143 cash on January 1, year 2. P recorded…
A: In case one company over take the assets and liabilities of another company , then accounting for…
Q: Explain the difference in net income between companies recording impairment under Successful Efforts…
A: Meaning of Net Income Net Income refers to the profits earned by a business after adjusting all the…
Q: How does the accounting treatment differ for exploration and development costs in extractive…
A: Extractive activities involve the search for and extraction of minerals, oil, gas, and other…
Q: What is depreciation? Why are depreciation methods important in the business arena? Explain the…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…
Q: Which is not within the definition of an intangible asset? A resource from which future economic…
A: Unlike tangible Assets these Intangible Assets are difficult to valuate
Q: and report economic activity. he reasons given for this statement is because AASB138:
A: Intangible assets are important in modern business since they frequently support a company's…
Q: D costs. b. Under IFRS, the product development portion of R&D is capitalized. c. U.S. standard…
A: R&D costs refer to the research and development costs refer expenses involves while a company…
Q: Which of the following statements is correct?(a) Both IFRS and GAAP permit revaluation of property,…
A: Answer: Option d.
Q: The main difference between U.S. accounting standards and international accounting standards when…
A: US GAAP refers to the accounting standards that are endorsed by the Securities and Exchange…
Q: Goodwill is an intangible asset that firms report on their respective balance sheet as a result of…
A: The objective of this question is to understand the procedures prescribed by both USGAAP and IFRS to…
Q: Discuss whether and how a company should account for a revaluation increase and a revaluation…
A: The answer are as follows
Q: Which of the following statements is not correct? * Administration and other general overhead cost…
A: The administration expense and the general expenses includes the operating expenses of the company.…
Q: Mining, explorations and other similar extractive businesses are naturally and…
A: Introduction: IFRS 6: Exploration for and evaluation of mineral resources, is a standard which…
Q: US GAAP generally follows historical cost accounting in reporting property, plant, and equipment…
A: Historical cost accounting and fair value accounting each have their merits, and the preference…
Q: Which of the following is / are external indicator/s of impairment loss? Impact of legal environment…
A: The reduction or decline in the carrying worth of any asset due to its fair value can be referred to…
Q: Can depreciation be a profit management tool for the enterprise? Please explain with reason.
A: Definition: Depreciation: Depreciation means fall in the value of an asset, its a process of…
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- How do amortization methods differ for intangible assets with finite useful lives versus those with indefinite useful lives, and what impact do these methods have on a company's financial statements?If a company develops in-house a highly profitable treatment and secures a patent for it, the asset will most likely appear on its balance sheet as an intangible asset (goodwill). True O FalseCompany A exchanges equipment with Company B, resulting in a gain for company A. The transaction has commercial substance. Which of the following statements is TRUE regarding this transaction as it related to company A? The entire amount of the gain would be recognized Only a part of the gain would be recognized None of the gain would be recongnized Because the transaction has commercial substance. Company A is in the same economic position as it was before the exchange took place.
- 15 - Which of the following statements about depreciation is false? a) Depreciation is a type of expense that does not require a cash outflow. B) As a result of use, wear, tear, depreciation or obsolescence must be experienced in the tangible asset. NS) The asset to be depreciated should be among the assets of the enterprise. D) Proportional depreciation method can be applied for all tangible fixed assets. TO) For a property, plant and equipment to be depreciated, its economic life must be more than one year.“Mining, explorations and other similar extractive businesses are naturally and fundamentally possessing risk, in addition to uncertain outcome” consequently all expenditures of such activities should be accounted for as expensesas and when incurred. Required: Assess, evaluate and briefly discuss this statement.According to the IPSASB's Conceptual Framework, how would you define an "asset"? Please select the right answer. Sorry, your answer was not correct! A resource owned by a public sector entity as a result of past events and from which future economic benefits are expected to flow to the enterprise A resource presently controlled by a public sector entity as a result of past events A resource owned and controlled by a public sector entity as a result of past events and from which service potential is generated None of the above
- Which of the following statements is/are correct? 1. Depreciation represents the loss in market value of an asset. II. The statement of financial position is likely to do a better job at capturing the assets/resources of a retailer (such as a supermarket) than a professional services firm (such as a law firm or professional accountancy firm). III. All tangible non-current assets go through the process of depreciation. IV. The following will have a negative impact on profitability in a given year: (a) increasing the allowance for trade receivables on the balance sheet, (b) reducing the useful life of depreciable non-current assets, (c) writing down closing inventory. a. Another combination of statements not shown among the other answers. b. All of the statements are correct. c. (II) and (IV) d. (I) and (III) e. (I), (II) and (III) f. (I), (III) and (IV)One factor that is not considered in determining the useful life of an intangible asset is * Residual value Provision for renewal or extension Expected action of competitors Legal life When a patent is amortized, the credit is usually made to * The patent account As accumulated amortization account An expense account An accumulated depreciation account A trademark is an example of which category of intangible asset? Artistic-related Contract-based Customer-related Market-related Which is a research and development cost? * Research and development performed under contract for others Development or improvement of technique and process Offshore oil exploration that is the primary activity of an entity Market research related to a major product for the entity O O O O O O O OWhich of the following items may be treated as excluded costs from the amortization base for a full cost company? Group of answer choices A. Dry hole costs on unproved properties B. Delay rentals on unproved properties C. Impairment costs on unproved properties D. Abandonment costs of unproved properties