Which of the following events could not coincide with the recognition of an expense? O The recognition of a prepaid expense O The recognition of a provision O A decrease in the carrying amount of an intangible asset o The derecognition of inventory O The recognition of an accrued expense
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- 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 givenWhich of the following may not form part of the regular itemized deductions from the gross income? * Allowance for depreciation under cash basis Repairs and maintenance Losses NOLCO None of the aboveExplain the accounting treatment in the event that an impairment review of a non-current asset which has been previously revalued with a revaluation surplus revealed that the non-current asset has suffered an impairment loss.
- According to PFRS 9, impairment gain A. Should result to carrying amount of financial asset in excess of its carrying amount assuming no impairment loss had been recognized previously B. Should result to carrying amount of financial asset in excess of its new recoverable amount C.Is amortized over the remaining term of the receivable D. Is recognized in profit or lossExplain the adjustments that may be made for the accounting discretions about the following: Abnormal charges to the accounts Asset revaluations IntangiblesWhich 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 is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua c. An unrealized revenue d. As a disclosure onlyWhen a loss contingency is recognized, where is it reported on the income statement?An example of a correction of an error is a change: a. From FIFO inventory valuation to the average method b. In the service life of property, plant and equipment c. From cash basis to accrual basis of accounting d. In the tax assessment related to a prior period
- Which of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized? A Removal of the asset. B Gain or loss on derecognition. C All of the above items must be recorded in the accounting records. D Depreciation up until the date of derecognition.Which of the following should be reported as a prior period adjustment? Change in Estimated Lives of Depreciable Assets Change from Unaccepted Principle to Accepted PrincipleThe gain on impairment loss reversal of an asset which is recognized in profit or loss is computed as the difference between the recoverable amount on date of reversal and the carrying amount on date of reversal the difference between the recoverable amount on date of reversal and carrying amount of the asset had no impairment loss been recognized previously the difference between the carrying amount of the asset had no impairment loss been recognized previously and the carrying amount of the asset on the date of reversal the difference between the carrying amount of the asset had no impairment loss been recognized previously and the recoverable amount on the date of the previous impairment testing.