Which of the following assets is not properly classified as property, plant, and equipment?
Q: 1. Which is incorrect concerning the criterion of control by the enterprise of the intangible asset?…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: The acquisition costs of property, plant and equipment do not include: a. The ordinary and necessary…
A: When an organization acquired property, plant, and equipment, etc. for the business purpose. It…
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A: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…
Q: All of the following would be classified as property plan, and equipment, except for a. Office…
A: Property, Plant & Equipment are those tangible assets which are held by the business for a long…
Q: Which of the following is not part of the definition of control? ability to obtain substantigly all…
A: Control defines as the ability to obtain substantially all remaining benefits of the assets and to…
Q: Which of the following items qualify as an intangible asset under IAS 38? None of them Advertising…
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Q: Which of the following items qualify as an intangible asset under IAS 38? a- Advertising and…
A: As per IAS 38, Intangible assets, The intangible asset is an identifiable asset with no physical…
Q: Which one of the following fixed Asset does not requires depreciation? a. Factory land b. Motor cars…
A: The depreciation can be charged on fixed assets as well as on some intangible assets.
Q: Which one of the fixed asset accounts listed will not have a related contra asset account? a.Office…
A: Explanation: Contra asset account for fixed asset accounts is accumulated depreciation account. The…
Q: All of the following would be classified as property, plant, and equipment except office buildings O…
A: The property, plant and equipment segment records all the buildings, machinery, equipment, etc.…
Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…
A: An entity should classify an asset held for sale category when the carrying amount of an asset will…
Q: The following are the causes of functional depreciation except: a. obsolescence of the machine b.…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Tom Parkey has prepared the following list of statements about depreciation. 1. Depreciation is a…
A: Depreciation is a method in accounting to allocate the cost of fixed ( tangible ) asset over its…
Q: Discuss whether the following items would meet the definition of an asset using the IFRS…
A: ASSET IS A RESOURCE CONTROLLED BY THE ENTITY AS A RESULT OF PAST EVENTS AND FROM WHICH FUTURE…
Q: The company controller, Barry Melrose, has asked for your help in interpreting the authoritative…
A: 1. 2.
Q: Which transaction is not processed in the fixed asset system? a. purchase of building b. repair of…
A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…
Q: Nizwa Company bought an equipment for manufacturing tube lights and the company management requested…
A: Depreciation: Depreciation is an estimation of the declining value of the assets over their useful…
Q: Choose only the letter of answer Which of the following would not be reported as inventory? * a.…
A: Ans. The goods or properties which are meant for the purpose of resale and which forms the major…
Q: are resources that benefit the company but do not have any physical substance. Some examples are…
A: Given: To calculate the patent's annual expense using the straight line method and revised annual…
Q: On your own words, describe the methods that companies can implement to depreciate plant assets.
A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…
Q: Which one of the following would not be valid grounds for a provision? A. A company has always…
A: Provision means an amount set side now to be payable in future because of some past event and…
Q: PAS 2, Inventories 388 Which one of the following is included in the scope of PAS 2 but excluded…
A: PAS 2 (Inventory):- This standard helps in calculating the cost of inventory and also helps in…
Q: Which is not within the definition of an intangible asset? A resource from which future economic…
A: Unlike tangible Assets these Intangible Assets are difficult to valuate
Q: ms, given the measures used? • How would you interpret the total amount for property, plant and…
A: 1. Measures used to determine the amount- WOW- Property, plant and equipment are measured at cost…
Q: As you have seen in Chapter 17, companies depreciate, or write off, the expense of tangible assets…
A: (a) Using the straight-line method, calculate the patent's annual amortization expense (in $) for…
Q: The controller of Excello Manufacturing, Inc., wants to use analytical procedures toidentify the…
A: Equipment is purchased incurring a number of costs. When equipment is manufactured there are…
Q: Which of the following situation/s do you think are considered to be part of property, plant and…
A: A company’s physical fixed assets or long-term assets that are tangible in nature and have maturity…
Q: Land and Buildings that are not currently used in the operation of the business are classified in…
A: Assets are the resources that are used or held in the business for future use purposes. Assets are…
Q: Which of the following is not an example of an intangible asset? A) Goodwill. B) Computer software.…
A: Intangible assets are those assets that do not have physical existence.It includes assets like…
Q: Madi Corporation has a single facility that it uses for manufacturing, sales, and administrative…
A: The business structure under accounting which shows different types of costs incurred by the…
Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…
A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…
Q: Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an…
A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…
Q: Which statement is incorrect regarding “components depreciation”? a. Each part of an item of…
A: Component depreciation is a type of depreciation which is charged on the components of the fixed…
Q: Which of the following would not be classified as property, plant and equipment on a balance sheet?…
A: This question deals with the IAS 16 "Property plant and equipment" As per IAS, Property plant and…
Q: 1) What are the accounting models accepted under IFRS for the measurement of property, plant &…
A:
Q: A computer software purchased as an integral part of a computer-controlled machine tool that cannot…
A: Note : Since you have asked multiple questions, we will solve first question for you. If you want…
Q: For each of the following assets, state whether the asset is tangible/intangible property,…
A: Asset: It can be defined as any resource or anything that is controlled and owned by the business…
Q: Describe an internal control that would prevent the charging of depreciation expense to the…
A:
Q: For each of the following errors in property, plant and equipment accounts, indicate a specific…
A: Answer: The internal control is the control that is set up in business so that there is no any error…
Q: Which one of the following assets could be described as a current asset? a. Stock of goods for…
A: Correct answer is A. Stock of goods for resale
10)Which of the following assets is not properly classified as property, plant, and equipment?
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- Which transaction is not processed in the fixed asset system? a. purchase of building b. repair of equipment c. purchase of raw materials d. sale of company vanWhich of the following can be recorded as intangible assets? (i) Staff training costs which has resulted in employees acquiring technical knowledge that is valuable to the company.(ii) Brand and customers lists generated by the marketing staff which have resulted in an increase in market share of the company. Question 6 options: 1) Item (i) only. 2) Item (ii) only. Item (i) also cannot be recorded as intangible asset.Staff training costs cannot be recorded as intangible assets because the Company cannot control the economic benefits that are related to the employees' technical knowledge. e.g. employees may resign from the Company. 3) Both items. 4) None of the items.To what extent do you consider the following items to be proper costs of the fixed asset? Give reasons for your opinions. a. Overhead of a business that builds its own equipment. b. Cash discounts on purchases of equipment. c. Interest paid during construction of a building. d. Cost of a safety device installed on a machine. e. Freight on equipment returned before installation, for replacement by other equipment of greater capacity. f. Cost of moving machinery to a new location. g. Cost of plywood partitions erected as part of the remodeling of the office. h. Replastering of a section of the building. i. Cost of a new motor for one of the trucks.
- Which of the following groups would be classified as intangible assets for financial accounting and reporting purposes? Computer software costs, development costs for internally developed patents, research, and goodwill Long-term notes receivable, copyrights, goodwill, and trademarks Start-up costs, goodwill, costs of employee training programs, and trademarks Patents, software development costs, franchises, copyrights, and trademarksWhich of the following is not a characteristics of an asset that us classified as property, plant and equipment? a. It has physical aubstance B. It is long term in nature C. It is acquired for use in business operations. D. It is acquired for resale. 2. Which of the following is excluded from " Property,plant and equipment? A. Major spare parts and long live stand by equipment.B. Building used in businessC. Equipment held for rentalsD. Held for sale assets 3. The initial cost of an item of property, plant, and equipment includes. A. Purchase cost B. Direct cost C. Decomissioning and restoration costD. All of these. 4.Which of the following is not capitalized as cost of land? A. Land improvements that have indifinite useful life B. Unpaid taxes on the property prior to the acquisition date not assumed by the entityC. Closing costs, such as titling and similar cost D Special assessment 5. Knife Co. Acquires a building by paying 6m and assuming a 2M unpaid mortgage on the building. How…One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. What additional disclosures should be made if property, plant & equipment are stated at revalued amounts? Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model? How should this change be accounted for in the financial statements?
- As you have seen in Chapter 17, companies depreciate, or write off, the expense of tangible assets such as trucks and equipment over a period of their useful lives. Many companies also have intangible assets that must be accounted for as an expense over a period of time. Intangible assets are resources that benefit the company but do not have any physical substance. Some examples are copyrights, franchises, patents, trademarks, and leases. In accounting, intangible assets are written off in a procedure known as asset amortization. This is much like straight-line depreciation, but there is no salvage value. Suppose you are the accountant for a certain pharmaceutical company. In January 2000, the company purchased the patent rights for a new medication from Novae, Inc., for $18,000,000. The patent had 15 years remaining as its useful life. In January 2005, your pharmaceutical company successfully defended its right to the patent in a lawsuit that cost $630,000 in legal fees. (a) Using…Which of the following items qualify as an intangible asset under IAS 38? a- Advertising and promotion on the launch of a huge product b- .Legal costs paid to intellectual property advocates to register a patent c- .None of them d- Operating losses during the initial stages of the project.The controller of Excello Manufacturing, Inc., wants to use analytical procedures toidentify the possible existence of idle equipment or the possibility that equipmenthas been disposed of without having been written off. Which of the following ratioswill best accomplish this objective?(1) Depreciation expense/book value of manufacturing equipment.(2) Accumulated depreciation/book value of manufacturing equipment.(3) Repairs and maintenance cost/direct labor costs.(4) Gross manufacturing equipment cost/units produced.
- Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the following statements is correct? a. When an asset is revalued, the entire class of property, plant, and equipment to which the asset belongs must be revalued. b. When an asset is revalued, individual assets within a class of property, plant, and equipment to which that asset belongs can be revalued. c. Revaluations of property, plant, and equipment must be made every three years. d. An increase in an asset’s book value as a result of the first revaluation must be recognized as a component of profit and loss.Which of the following groups would be classified as intangible assets for financial accounting andreporting purposes? a. long-term notes receivable, copyrights, goodwill, and trademarksb. patents, computer software costs, franchises, and trademarksc. computer software costs, research and development costs for internally developed patents,patents, and goodwilld. organization costs, goodwill, costs of employee training programs, and trademarksWhat do you know about PPE ( property, plant and equipment ? • What range of measures is used to determine amounts for these items in the reports of the individual companies? • Do you think it is valid to add the items, given the measures used? • How would you interpret the total amount for property, plant and equipment in the financial statements? • Compare the measures used by the different companies for similar items. Are there any inconsistencies in how similar items are measured by the different companies? Answer above by seeing 2020 annual report of Coles & WoolWorths AU and evaluate the PPE disclosure of WOW and COL.
