PPE

Question 1

Are tangible assets that are held for use in production or supply of goods or services, for rental to others or for administrative purposes, and are expected to be used during more than one period

Answer 1

Property Plant and Equipment

Question 2

The major characteristics of PPE are as follows except:
A. Are tangible assets, meaning with physical substance
B. Are converted into goods available for sale in a merchandise business
C. Used in business, meaning used in production or supply of goods and services, for rental purposes and for administrative purposes
D. Expected to be used over a period of more than 1 year.

Answer 2

B

Question 3

PPE is recognized when:
I. It is probable that future economic benefits associated with the assets will flow to the entity.
II. The cost of the asset can be measured reliably.

Which of the statement above is incorrect?

Answer 3

None. Both statements are correct

Question 4

Which of the following is classified as PPE when the entity expects to use them during morethan 1 year?

A. Major spare parts and stand-by equipment.
B. Spare parts and servicing equipment

Answer 4

A