Which of the following would not be classified as property, plant and equipment on a balance sheet? Group of answer choices A)Equipment used in the manufacturing process. B)A building used as corporate headquarters. c)A natural resource being mined. D)Land held for investment. e)All of the above would be property, plant and equipment.

Which of the following would not be classified as property, plant and equipment on a balance sheet? Group of answer choices A)Equipment used in the manufacturing process. B)A building used as corporate headquarters. c)A natural resource being mined. D)Land held for investment. e)All of the above would be property, plant and equipment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5MC

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Companies that use IFRS: a. must report all their assets on the statement of financial position (balance sheet) at fair value. b. may report property, plant, and equipment and natural resources at fair value. c. may not use a mixed-attribute system for its balance sheet. d. may only use historical cost as the measurement basis in financial reporting.
What 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.
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.
Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.
Which of the following items should not appear in the Statement of Financial Position (Balance Sheet): (a) Property, plant and equipment (b) Inventories (c) Trade and other payables (d) Depreciation
what is the answer for Outline the accounting entries required when plant assets are disposed by a company.
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What financial statements are property, plant, and equipment reported on, and how?
Building and machinery used for carrying on the business and not meant for resale are called: a. Quick assets b. Fixed assets c. Current assets d. Liquid assets
Indicate whether each of the following statements is true or false. 1. Assets classified as property, plant, and equipment must be long-term in nature or possess physical substance. 2. Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment. 3. Assets under construction for a company’s own use do not qualify for interest cost capitalization.
Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is equal to the cost of the asset. a. Can one record additional depreciation on the assets if the assets are still useful to the business? b. Why? Explain: c. Also, when can such a business make an entry to remove the cost and accumulated depreciation of the fixed assets from the account?
Which one of the fixed asset accounts listed will not have a related contra asset account? a.Office Equipment b.Building c.Land d.Delivery Equipment