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Flashcards in Mod 11 Wrong Answers Deck (21):
0

A nonmonetary exchange is recognized at fair value for assets unless...3

1 fair value is not determinable

2 exchange transaction is to facilitate sales to customers

3 exchange transactions lack commercial substance

1

An entity's cash flows are expected to change significantly if...

The configuration of cash flows received differs significantly
From configuration of cashflows of asset transferred

2

For purposes of Nonmonetary exchanges, the configuration of cash flows includes...3

1 risk

2 timing

3 amount of cashflows of the assets

3

In determining cash flows from a transaction, the effect of taxes is...

Not considered unless it serves a legitimate business purpose
Other than tax avoidance

4

Sum of years digits method (SYD) for one year?

2) what are you calculating over multiple years?

Denominator =[n(n+1)]/2, where n is useful life

Remaining useful life/denominator - (HC - SV)

2) accumulated depr.

5

Double declining balance of depreciation calculation

(1/useful life) x 2 x (HC - A/D)

6

Losses associated with long lived assets, which are to be disposed of are to be reported as...

A component of income for continuing operations before income
Taxes

7

Discontinued operations result from...

Disposal of a separate business component

8

A development stage enterprise shall issue the same basic financial statements as an established operating enterprise, but shall...

Disclose certain additional information

9

A development stage enterprise's income statement should show...2

1 revenues and expenses for each period covered

2 include cumulative amounts from enterprise's inception

10

Under IFRS, the revaluation model for property, plant and equipment, there is no rule for...

The frequency or date of revaluation

11

When the revaluation method is used for reporting property, plant and equipment under IFRS, any gain or loss is recorded in...

Revaluation surplus account classified as other comprehensive
Income

12

Under IFRS, using the revaluation method, a piece of equipment used in production was sold, what happens to the $20,000 of revaluation surplus?

The $20,000 of revaluation surplus should be transferred to
Retained earnings

13

IFRS:

under the revaluation model, when an asset is revalued...

The entire asset class of PPE to which the asset belongs is
Revalued

14

Revaluation surplus is presented in...

Comprehensive income, not profit or loss

15

IFRS definition of recoverable amount

Greater of net selling price or valuation in use

16

In recording a nonmonetary exchange, if the transaction lacks commercial substance and boot is given up, the asset received is recorded at...

The book value of the asset given up + boot given up

17

In recording a nonmonetary exchange, if the transaction lacks commercial substance and boot is received, the asset received is recorded at...

Book value of the land given - the boot received + gain recognized

18

In recording a nonmonetary exchange, if the transaction lacks commercial substance and boot received, what is the calculation for recognizing the gain on the transaction?

Gain recognized =
(boot received)/(boot received + FMV of assets received) x total gain

19

Freight charges paid for goods held for resale must be capitalized, because these freight charges are...

Directly connected with bringing the goods to the place of business
Of the buyer

20

In transit insurance on goods held for resale purchased FOB shipping point, should be capitalized because these insurance charges are directly connected with...

Bringing goods to the place of business of the buyer