1 one advantage of recording property plant and equipment at historical costs is tha 4313818

1 one advantage of recording property plant and equipment at historical costs is tha 4313818

1.One advantage of recording property, plant, and equipment at historical costs is that historical cost is equal to the fair value on the purchase date.

a.True

b.False

2.GAAP requires a company to report its property, plant, and equipment at fair value less accumulated depreciation.

a.True

b.False

3.Improvements made to a leased property should be capitalized over the life of the lease or the life of the assets whichever is shorter.

a.True

b.False

4.Under IFRS a company is allowed to revalue its property, plant, and equipment up to fair value if the value can be reliably measured.

a.True

b.False

5.Assets acquired by donation will have zero value for financial reporting purposes.

a.True

b.False

6.The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset is the fair value of the new asset acquired.

a.True

b.False

7.If an exchange lacks commercial substance and results ina gain, the gain must be deferred by reducing the cost of the asset.

a.True

b.False

8.All interest paid on a construction loan should be capitalized as part of the cost of the constructed asset.

a.True

b.False

9.Capitalized interest for a constructed asset cannot exceed actual interest costs.

a.True

b.False

10.The amount of interest that can be capitalized for a qualifying asset is the lesser of the amount considered as avoidable interest costs or actual interest cost.

a.True

b.False

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts