Repairs and maintenance costs are normally: O a. Expensed in the profit or loss as incurred. O b. Recorded as deferred expenses. O c Capitalised. O d. Amortised.

Q: 6. Under IFRS, which of the following must be expensed? a. maintenance only b. repairs only c.…

A: Repair of equipment or purchase of its parts over $5000 is to be capitalized if it leads to an…

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: C. Our Funding (cont'd) C6. Net Interest Expense Accounting policies Finance income is recognised in…

A:

Q: Excess of revenue over expense is O a. Profit O b. Loss O C. Asset O d. Revenue

A: Revenue is the amount received from selling or transferring goods and services from the business to…

Q: hich one of the following category prepaid expenses belong to? a. Current asset b. Intangible asset…

A: Prepaid expenses are those expenses which are paid in advance for future period of time and expenses…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…

Q: Which of the following items may be classified as nonoperating revenues and expenses?   Multiple…

A: Non-operating revenues and outlays are those incomes and expenses that are earned or incurred from…

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: The money spent on long term assets is called Select one: O a. Revenue expenditures O b. Capital…

A: Capital expenditures refer to funds that are used by a company for the purchase, improvement, or…

Q: Describe the relationship between expense recognition and long-term assets

A: Two kinds of expense recognition are related to long-term assets; These are: Capital & Revenue.

Q: Loss contingencies are usually recognized in the income statements of the period when     a.…

A: Solution; Loss contingencies are usually recognized in the income statements of the period when…

Q: Which item would not be classified as an operating expense?     a)  Interest expense.   b)…

A: Operating Expenses Operating expenses are those expenditures that a business incurs to engage in…

Q: Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees…

A: In accounting, deferral means to defer or delay recognizing certain revenues or expenses…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses means those expenses which pertains to current period and recorded in the…

Q: Under IFRS, receivables are to be reported on the balance sheet at: a.    amortized cost. b.…

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

Q: Which of the following is the correct calculation of book value? a. Cost - Impairment expense b.…

A: Book value (B.V) is the worth of the asset at a specified date.

Q: Depreciated replacement cost is equal to the *   a. Sound Value b. Net appreciation c.…

A: The depreciation expense is charged on fixed asset as reduced value of fixed asset with the passage…

Q: Normal repair and maintenance of an asset is an example of what?

A: Normal repair and maintenance cost means the objective of restoring the asset to perform the…

Q: The cost incurred to extend an asset's useful life is recorded as Oa. routine expenditures. Ob.…

A: All expenses that are incurred to increase the future economic benefits are known as capital…

Q: Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Which one of the following category prepaid expenses belong to?

A: Current assets are the assets of the company that are expected to be consumed through standard…

Q: The estimated economic life of an asset is also known as ________.     A. residual value.     B.…

A: Estimated life refers to the estimated economic life or useful life which means the assets will be…

Q: Th e valuation technique under which assets are recorded at the amount that would be received in an…

A: The assets of a business can be recorded by valuation using current cost basis or the market value…

Q: The cost incurred to extend an asset's useful life is recorded as: O a. maintenance expenditures. O…

A: All expenses that are incurred to increase the future economic benefits are known as capital…

Q: TRUE OR FALSE   The main difference between the function and the nature of expense methods is the…

A: Salaries, rent, supplies, and travel are all examples of natural expense classifications whereas in…

Q: Describe the accounting and amortization of prior service costs.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Which of the following could be charged to the profit and loss account as an expense? O A…

A: Profit and Loss account provides overview about all incomes and expenses of an entity for a…

Q: Explain how depreciation expense satisfies the definition of an expense

A: Depreciation is the amount with which an asset’s value decreases every year. Example:- Machinery…