The following event is referred to as the post-balance sheet event: O A. OB. O C. O D. Any event that could have a material positive effect on the balance sheet which is becoming known during this period Dry exploratory wells only which is becoming known during this period Impairment of unproved properties only which is becoming known during this period Both impairment of unproved properties and dry exploratory wells which are becoming known during this period

The following event is referred to as the post-balance sheet event: O A. OB. O C. O D. Any event that could have a material positive effect on the balance sheet which is becoming known during this period Dry exploratory wells only which is becoming known during this period Impairment of unproved properties only which is becoming known during this period Both impairment of unproved properties and dry exploratory wells which are becoming known during this period

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13MC: Which of the following represents an event that is less routine when accounting for long-term...

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Which of these items would be accounted for prospectively? Select one: O a. Prior Period Adjustments, but not Declining-Balance Depreciation to Straight-Line Depreciation O b. Declining-Balance Depreciation to Straight-Line Depreciation, but not Prior Period Adjustments O c. Both Prior Period Adjustments and Declining-Balance Depreciation to Straight-Line Depreciation O d. Neither Prior Period Adjustments nor Declining-Balance Depreciation to Straight-Line Depreciation
Indicate whether each of the following statements is true or false. An impairment loss is the amount by which the carrying amount of the asset exceeds the sum of the expected future cash flows from the use of that asset. Answer The economic performance of an asset being worse than expected can be viewed as an external indicator of impairment of asset values for property, plant and equipment. Answer Under IFRS, an impairment loss can be reversed when estimates change.
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What is the purpose of charging depreciation in financial statements? A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B To ensure that funds are available for the eventual replacement of the asset C To reduce the cost of the asset in the statement of financial position to its estimated market value D To account for the ‘wearing-out’ of the asset over its life
4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the market value of an asset over time B. A means of allocating the cost of an asset over a number of accounting periods C. A means of setting funds aside for the replacement of the asset D. A means of estimating the current value of the asset
Which of the following contingencies is usually accrued? A risk of loss from fire B discovery of possible mineral reserves on company property C bad debts D expected proceeds from insurance settlement
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Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation B. Assets with physical traits, such as property or equipment C. Assets not recorded on the Balance Sheet, such as customer loyyalty or intellectual property D. Assets that were added to the company in the most recent annual report E. Assets that depreciate at an accelerated rate
First cost Book depreciation life MACRS property class Salvage value n 1 2 3 4 5 6 7 8 A $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $0 B $22,857 $16,327 $11,661 $5,154 SO SO SO SO $80,000 7 years 7 years $24,000 C $11,429 $19,592 $13,994 $9,996 $7,140 $7,140 $7,140 $3,570 D $22,857 $16,327 $11,661 $8,330 $6,942 $6,942 $6,942 SO
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