Mod 2 International Accounting
Question 1
How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?
a. It should be expensed in the period incurred.
Selected: b. It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet.This answer is correct.
c. Both methods are acceptable.
d. Neither method is acceptable under IASB rules.
The cost of borrowing funds to acquire or construct property, plant, and equipment accounted for under IASB rules should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet.
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Question 2
A "bottom up" test and "top down" test must be applied under IASB standards to determine what?
a. Impairment of tangible fixed assets
b. Impairment of intangible fixed assets
Selected: c. Impairment of goodwillThis answer is correct.
d. Allocation of overhead costs
A "bottom up" test and "top down" test under IASB standards is used to determine impairment of goodwill.
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Question 3
Under IAS 19, Employee Benefits, which of the following benefits are covered?
a. Compensated absences and bonuses
b. Post-employment benefits
c. Deferred compensation and disability benefits
Selected: d. All of the aboveThis answer is correct.
Compensated absences and bonuses, post-employment benefits, and deferred compensation and disability benefits are all covered under IAS 19, Employee Benefits.
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Question 4
Under U.S. GAAP, interest on loans secured to acquire fixed assets must be _______.
a. Expensed in the period they are incurred
Selected: b. Capitalized as part of the fixed asset costThis answer is correct.
c. Either expensed currently or capitalized as part of the fixed asset cost
d. Charged against revenue in the year the asset is put into service
Under U.S. GAAP, interest on loans secured to acquire fixed assets must be capitalized as part of the fixed asset cost.
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Question 5
According to
How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?
a. It should be expensed in the period incurred.
Selected: b. It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet.This answer is correct.
c. Both methods are acceptable.
d. Neither method is acceptable under IASB rules.
The cost of borrowing funds to acquire or construct property, plant, and equipment accounted for under IASB rules should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet.
/1
1/1
Question 2
A "bottom up" test and "top down" test must be applied under IASB standards to determine what?
a. Impairment of tangible fixed assets
b. Impairment of intangible fixed assets
Selected: c. Impairment of goodwillThis answer is correct.
d. Allocation of overhead costs
A "bottom up" test and "top down" test under IASB standards is used to determine impairment of goodwill.
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Question 3
Under IAS 19, Employee Benefits, which of the following benefits are covered?
a. Compensated absences and bonuses
b. Post-employment benefits
c. Deferred compensation and disability benefits
Selected: d. All of the aboveThis answer is correct.
Compensated absences and bonuses, post-employment benefits, and deferred compensation and disability benefits are all covered under IAS 19, Employee Benefits.
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Question 4
Under U.S. GAAP, interest on loans secured to acquire fixed assets must be _______.
a. Expensed in the period they are incurred
Selected: b. Capitalized as part of the fixed asset costThis answer is correct.
c. Either expensed currently or capitalized as part of the fixed asset cost
d. Charged against revenue in the year the asset is put into service
Under U.S. GAAP, interest on loans secured to acquire fixed assets must be capitalized as part of the fixed asset cost.
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Question 5
According to