Which of the following asset is not under PAS 41 Select the correct response: Harvested cotton Sugarcane Sugar Cotton plants Statement 1 - Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate. Statement 2- Accounting for government grant uses a 'matching' concept such that, if the related expense is not yet recognized, income from government grant is also not yet recognized. Select the correct response: Only Statement 1 is correct Only Statement 2 is correct Both statements are correct Both statements are incorrect

Which of the following asset is not under PAS 41 Select the correct response: Harvested cotton Sugarcane Sugar Cotton plants Statement 1 - Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grants are intended to compensate. Statement 2- Accounting for government grant uses a 'matching' concept such that, if the related expense is not yet recognized, income from government grant is also not yet recognized. Select the correct response: Only Statement 1 is correct Only Statement 2 is correct Both statements are correct Both statements are incorrect

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

give the definition, recognition, measurement and derecognition of "government grant"
1. An account for expenditures does not appear in which fund? (a) Capital Projects. (b) Enterprise. (c) General. (d) Special Revenue. 2. Which of the following receipts is properly recorded as unrestricted current funds on the books of a university? (a) Tuition. (b) Student laboratory fees. (c) Housing fees. (d) Research grants. 3. The current funds group of a NFP private university includes which of the following? Annuity Funds Loan Funds (a) Yes Yes (b) Yes No (c) No No (d) No Yes
All of the following statements are true concerning the conversion of governmental funds to governmental activities except a. Depreciation expenditure reported in governmental funds simply becomes depreciation expense in governmental activities. b. A decrease in the long-term liability for compensated absences will result in expenses of various functions at the government-wide level being less than expenditures at the governmental fund level. c. Assuming capital outlay expenditures all reflect purchases of capital assets as per the government's capitalization threshold policy, capital outlay expenditures simply become additions to capital assets. d. Bonds payable are not reported in the governmental funds financial statem
Government grants are recognized only when there is reasonable assurance that the entity will comply with the conditions attaching to them the grants are received the grants will be received a and b a and c
Select from the option list provided the most likely classification(s) of net assets, if any, that are affected by each transaction of a not-for-profit entity. The entity reports the minimum required classes of net assets. Each choice may be used once, more than once, or not at all. Transaction Answer 1. Legally restricted gains. 2. Expenses reported by functional classification. 3. Contributions of services that do not create or enhance nonfinancial assets or require special skills. 4. Costs of collection items not capitalized by the NFP. 5. Board-designated endowment. 6. Expenses reported by natural classification. 7. Conditional promise to give if the barrier has not been overcome. 8. Unconditional promises to give cash with amounts due in future periods. 9. Receipt of a gift restricted to acquisition of a long-lived asset that has been placed in service. The entity chooses to imply a time restriction over the life of the asset. 10. Investment return on a donor-restricted
please explain why the option is correct and remainings are incorrect
14 A government entity accounts for transfers to or from investment property at cost, no gain or loss shall arise from the transfer except when an asset is impaired. Group of answer choices True False
Which of the following is not dealt with by PAS 41? [A] the accounting for biological assets [B] the subsequentmeasurement of agricultural produce harvested from biological assets [C] the accounting treatment of government grant received in respect of biological assets [D] all of the choices are dealt with by PAS 41.
How does the topic of accounting for government grants relate to the topic of accounting for biological assets?
14) When examining revenue transactions, which of the following transactions is classified as an exchange transaction? A) When a homeowner pays property taxes B) When a university receives a federal grant that mandates a certain type of research activity C) When an aquatic center receives cash for a group swim D) When an employer deducts money for state tax withholding
Agency Funds account for financial resources for which government is acting as an owner. True False Donated assets should be recorded at historical cost. True False
A local government transfers RO 20,000 from its general fund to an internal service fund to establish a centralized motor vehicle service center. Which one of the following represents the above transfer of funds from the general fund to internal service fund? a. Residual expenditure transfer b. Residual loan transfer c. None of the options d. Residual grant transfer