What do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you explain the terms “terminal l
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What do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you explain the terms “terminal loss” and “recapture” in context of CCA calculation?
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- Present value of decommissioning and restoration costs are capitalized as PPE and with a corresponding credit to what account?How can the Calculation of capital-recovery cost (with return)be done?The modified internal rate of return (MRR) test is designed to address a limitation associated withthe use of the internal rate of return (IRR). What is that limitation?a) Working capital requirementb) Income taxesc) Reinvestment rated) Depreciation expense
- How should changes in the estimated unguaranteedresidual value be handled by the lessor?Which of the following payback methods considers the salvage value in its basic computations? a. Traditional payback b. Bailout payback c. Present value payback d. Discounted paybackThe third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A. payback method B. accounting rate of return C. internal rate of return D. inventory turnover
- Which of the following cases would result in an actuarial loss? Projected benefit obligation decreased. Projected benefit obligation increased. Fair value of plan assets increased. Fair value of plan assets decreased.Which of the following investment appraisal techniques does not involve discounting? a. NPV b. Discounted payback period c. ARR d. IRRDecreases in the projected benefit obligation due to an increase in interest rate are called (enter 1, 2, 3, or 4 that represents the correct answer): Asset Gains Asset Losses Liability Gains Liability Losses
- Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to useDefine the terms, or give short explanations. -percentage return -price discovery -put -real asset -repurchase agreement (repo) -return -risk -risk aversionUnder IFRS, how are investment properties subsequently measured? a) The cost model must be used. b) The cost or fair value models may be used. c) The cost or revaluation models may be used. d) The fair value model must be used.
