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FINAL EXAMINATION: Inventory & PPE

Quiz by Mark Anthony Grabillo

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55 questions
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  • Q1
    What is the standard that covers accounting for Biological Assets and Agricultural Produce?
    IFRS 9
    IAS 41
    IAS 2
    IAS 16
    30s
  • Q2
    What is the standard that covers accounting for Borrowing Costs capitalizable as part of the cost of a constructed asset?
    IAS 16
    IAS 17
    IAS 2
    IAS 23
    30s
  • Q3
    What is the standard that covers accounting for Property, Plant & Equipment?
    IAS 23
    IAS 16
    IAS 17
    IAS 20
    30s
  • Q4
    What is the standard that covers accounting for Government Grants?
    IAS 2
    IAS 23
    IAS 16
    IAS 20
    30s
  • Q5
    Property, plant, and equipment are defined as...
    Tangible assets held for use in the production or supply of goods or services or for administrative purposes
    Tangible assets held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and expected to be used during more than one reporting period.
    Tangible assets held for sale in the ordinary course of business
    Tangible assets held to earn rentals or for capital appreciation
    30s
  • Q6
    The cost of property, plant, and equipment comprise all of the following, except...
    Initial estimate of the cost of dismantling the asset for which the entity has no present obligation
    Import duties and non-refundable purchase taxes
    Any cost directly attributable in bringing the asset to the location and condition for the intended use
    Purchase price
    30s
  • Q7
    In an exchange with commercial substance...
    Gain or loss is recognized entirely
    Only loss should be recognized
    Gain or loss is not recognized
    Only gain should be recognized
    30s
  • Q8
    What is the accounting standard that covers accounting for Inventories?
    IAS 2
    IFRIC 2
    IFRS 2
    SIC 2
    30s
  • Q9
    Which exchange has a commercial substance?
    Exchange of assets with no difference in future cash flows
    Exchange of assets that causes the entities to remain in essentially the same economic position
    Exchange by entities in the same line of business
    Exchange of assets with difference in future cash flows
    30s
  • Q10
    According to IASB's Board Conclusion No. 60, which of the following are classified as "Biological Assets" under IAS 41
    Sugarcane roots
    Tea bushes
    Standing sugarcane
    Fruit trees
    30s
  • Q11
    Net realizable value is used to measure which inventory?
    Minerals
    Commodities held by broker-traders
    All of these are measured at net realizable value
    Agricultural inventory
    30s
  • Q12
    An example of an inventory accounting policy that should be disclosed is...
    Classification of inventory into raw materials, work in process, and finished goods
    Effect of inventory profit caused by inflation
    Identification of major supplier
    Method used for inventory costing
    30s
  • Q13
    Which is not a basic assumption of the gross profit method?
    The sales reduced to cost basis when deducted from the sum of beginning inventory and net purchases would result to inventory on hand
    Goods not sold must be on hand
    The beginning inventory plus net purchases equals total goods to be accounted for
    The amount of purchases and the amount of sales remain relatively unchanged from the previous period
    30s
  • Q14
    Which of the following would cause a decrease in the cost ratio used in the retail inventory method?
    Higher retail prices
    Higher freight-in charges
    More employee discounts
    Lower net mark-ups
    30s
  • Q15
    Which of the following is not an alternative name for "Conservative Retail" method?
    Average Retail Method
    Conventional Retail Method
    Lower of Cost or Market Retail Method
    Lower of Average Cost and Net Realizable Value
    30s

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