Chapter 7, Problem 3Q

Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.

Which statement is incorrect regarding reclassification of financial assets? All reclassifications out of FVTOCI measurement category result in 'reclassification. adjustment.  The effective interest rate and the measurement of expected credit losses are not adjusted as a result of the reclassification from AC measurement category to FVTOCI and vice versa.  Reclassifications to FVTPL measurement category result to amounts recognized in profit or loss. The effective interest rate is determined on the basis of the fair value of the asset at the reclassification date when an entity reclassifies a financial asset out of FVTPL measurement category.

What is the formula for the NET FIXED ASSET if it is not given in the financial statement?

In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? A.None of these. B. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL C. Reclassification of financial assets out of the FVTPL measurement category. D.Reclassification of financial assets out of the amortized cost measurement category to FVTPL

Are the amounts at which fixed assets are reported on the balance sheet, their approximate market values as of the balance sheet date? Does this conflict with the historical cost principle?

Which of the following statements is not correct?   Multiple Choice   The cost less the salvage value equals the depreciable base of a long-term asset.   Uncollectible Accounts Expense is a contra asset account.   If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account.   Each adjustment for an accrued expense includes a credit to a liability account.

Which of the following situations does not base an accounting measure on a present value? Prepaid insurance , leases, pensions or sinking funds

Record the entry to adjust asset values to fair value. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. How do I do this? What part of this is the adjust asset value and what part is the deficit entry

Some believe that accounting depreciation measures thedecline in the value of fixed assets. Do you agree? Explain.