Which of the following is a false statement regarding revaluation of PPE? A. Revalued amount is either fair value or depreciated replacement cost. B. If simultaneous revaluation is not possible, revaluation can be done on a rolling basis provided revaluation of the class of assets is completed within a short period of time and provided the revaluations are kept up to date. C. The difference between the PPE’s carrying amount and its revalued amount is known as revaluation surplus and should be presented in the statement of comprehensive income, net of applicable tax. D. When an asset's carrying amount is increased as a result of revaluation, the increase shall always be credited to revaluation surplus regardless of the existence of previous impairment loss recognized.
Which of the following is a false statement regarding revaluation of PPE?
A. Revalued amount is either fair value or depreciated replacement cost.
B. If simultaneous revaluation is not possible, revaluation can be done on a
rolling basis provided revaluation of the class of assets is completed within
a short period of time and provided the revaluations are kept up to date.
C. The difference between the PPE’s carrying amount and its revalued amount is
known as revaluation surplus and should be presented in the statement of
comprehensive income, net of applicable tax.
D. When an asset's carrying amount is increased as a result of revaluation, the
increase shall always be credited to revaluation surplus regardless of the
existence of previous impairment loss recognized.
Which of the following should be included as cost of inventory?
A.
B. Depreciation expense of the factory machinery.
C. Storage cost of finished goods.
D. None from the choices.
In accounting for petty cash fund, which of the following is correct?
A. Under the imprest fund system, the petty cash fund is credited when expenses
are paid.
B. Under the fluctuating fund system, the petty cash fund is credited when
expenses are paid.
C. Under the fluctuating fund system, the petty cash fund is credited when the
size of the fund is increased.
D. Under the imprest fund system, no year-end
when the fund remains unreplenished as of that date.
During the current year, KGA CORPORATION acquired an investment in equity
securities classified as a financial asset at fair value through profit or loss.
In relation to such investment, which of the following items are correctly
accounted for?
A. Special assessment requirement by the investee corporation does not affect
the total cost of the investment.
B. Declaration of bonus issue by the investee corporation increases both the
number of shares held by the investor and the investment cost per share.
C. Unrealized gains and losses from fair value changes are not presented as a
separate line item in the shareholders’ equity.
D. Dividends received from the investee corporation are deducted from the
investment balance.
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