Chapter 1, Problem 19DQ

Which of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition?   Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract.   Costs that would be incurred regardless of whether a contract is obtained are not capitalized.   The capitalization requirement is subject to a practical expedient.   Costs must be capitalized even if the amortization period is one year or less.

Which of the following is a false statement regarding revaluation of PPE?A. Revalued amount is either fair value or depreciated replacement cost.B. If simultaneous revaluation is not possible, revaluation can be done on arolling basis provided revaluation of the class of assets is completed withina short period of time and provided the revaluations are kept up to date.C. The difference between the PPE’s carrying amount and its revalued amount isknown as revaluation surplus and should be presented in the statement ofcomprehensive income, net of applicable tax.D. When an asset's carrying amount is increased as a result of revaluation, theincrease shall always be credited to revaluation surplus regardless of theexistence of previous impairment loss recognized.   Which of the following should be included as cost of inventory?A. Depreciation expense of the delivery equipment.B. Depreciation expense of the factory machinery.C. Storage cost of finished goods.D. None from the choices.   In…

Which of the following would not be considered a general long term liability?Select one:a. Long term promissory notesb. Long term portion of judgementc. Unfunded compensated absencesd. Unfunded rent obligation