Which is not an expense? A. costs of goods sold or services rendered B. loss on disposal of a noncurrent asset C. write-off of a worthless intangible D. use of entity resources E. answer not given
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Which is not an expense?
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- Which is not an expense? * costs of goods sold or services rendered loss on disposal of a noncurrent asset write-off of a worthless intangible use of entity resources answer not givenTRUE OR FALSE The principle of historical cost states that acquired assets should be recorded at their actual cost and not at what management thinks they are worth as at reporting date.Which of the following best describes goodwill impairment in accounting? A) Goodwill impairment occurs when the fair value of a reporting unit exceeds its carrying amount. B) Goodwill impairment is the process of recognizing a decrease in the value of an intangible asset beyond its recoverable amount. C) Goodwill impairment is the recognition of an expense when the carrying amount of goodwill on the balance sheet exceeds its fair value. D) Goodwill impairment occurs when the fair value of a reporting unit falls below its carrying amount, necessitating an adjustment to the goodwill balance.
- Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers to the process of converting assets to expenses.B. Only the purchase price of the asset is capitalized.C. Capitalizing a cost means to record it as an asset.D. Capitalizing costs results in an immediate decrease in net income.Explain how losses on impaired intangible assets shouldbe reported in income.Which of the following expenditure is not capital expenditure for equipment? a. Assembly b. Testing for use c. Uninsured theft d. Sale tax e. None of the answer is correct
- Which of the following does describe intangible assets? a. They are not lack physical existence. b. They are financial instruments. c. They provide short-term benefits. d. They are classified as long-term assets.Which of the following expenditures cannot be included in R&D costs? a. indirect costsb. intangibles purchased from othersc. personnel costsd. contract services performed for othersThe key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount ofthe asset must _________________. a Be lower than initial cost of the asset. b Be higher than its net realizable value. c Principally be recovered through continuing use. d Principally be recovered through a sale transaction.
- Which of the following items may be classified as nonoperating revenues and expenses? Multiple Choice Loss on the sale of equipment. Interest revenue. All of the other answers are classified as nonoperating revenues and expenses. Interest expense.The ‘carrying value’ of a depreciable asset is the difference between ____? a. Depreciation and accumulated depreciation b. Cost and accumulated depreciation c. Cost and depreciation d. None of the aboveIndicate whether each of the following statements is true or false. The recoverable amount used to impairment test a long-lived tangible asset is defined as the asset’s fair value less costs to sell. After an impairment loss is recorded, the recoverable amount becomes the basis for the impaired asset and is used to calculate depreciation in future periods. Land acquired for resale or disposal is more appropriately classified as inventory rather than property, plant and equipment.