a Which of these is an allowable cost of an asset under IAS 16? 1. Professional fees 2. General overheads 3. Cost of site preparation 4. Initial operating losses 5. Administration expenses 6. Decommissioning costs O a. 1,3 and 6 O b. 1, 3 and 5 O c. 1, 2 and 6 O d. 1, 2 and 4 O B IA ASUS ZenBook
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- Cost includes all costs necessary to bring the asset to a working condition for its intended use. Which of these costs are taken as a part of cost of assets? I. Invoice price II. Transportation cost III. Installation charges I and II II and III I, II and III I and IIICosts incurred internally to create intangibles are required to be a. expensed as incurred b. capitalized c. expensed only if they have a limited life O d. capitalized if they have an indefinite lifeThe life cycle costs of an asset include which of the following? I. Purchase cost of the asset II. Shipping and installation cost of the asset. III. Operating and maintenance cost of the asset IV. Salvage value of the asset. Solve, a. I and IV only b. I, III, and IV only c. I and III only d. I, II, III, and IV.
- Which of the following expenditures would be included in the cost of a fixed asset? Oa. Sales taxes Ob. Vandalism Oc. Uninsured theft Od. Mistakes in installationOf the following, what information is required to calculate depreciation allowances under MACRSGDS? I. Useful life II. First cost. III. Salvage value. IV. Property class a. II and IV only. b. II, III, and IV only. c. I, II, and IV only. d. I, II, III, and IV.MFRS 138: Intangible Assets prescribes that research and development (R&D) costs should comprise all costs that are directly attributable to R&D activities, or that can be allocated on a reasonable basis, to such activities. Explain FOUR (4) costs of R&D activities.
- 1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi FuCosts associated with various intangibles of a company may either be expensed when incurred or capitalized and amortized. Such costs might be recorded in any of the following ways: a. charged to the Patent account and amortizedb. charged to the Franchise account and amortizedc. charged to other appropriate asset accounts and amortized or depreciatedd. charged to expense when incurred Required:Indicate how each of the following costs should be recorded by placing the appropriate letter (a through d) in the space provided. ____ 1. Initial fee to acquire a franchise. ____ 2. Design, construction, and testing of preproduction prototypes and models. ____ 3. Legal costs incurred in connection with a successful patent application. ____ 4. Laboratory research aimed at discovery of new knowledge. ____ 5. Cost of purchased equipment that will be used in a series of R&D projects over a ten-year period. ____ 6. Legal costs of the initial incorporation of a business. ____ 7. Cost of a long-term…MINT CALKOISES (nollabberged eonels-gninilbod-siduo) suis dood grigio 9- Classifying Long-Lived Assets and Related Cost Allocation Concepts For each of the following long-lived assets, indicate its nature and related cost allocation concept. lo bro sdi in sulay Use the abbreviations shown on the right: od or brod.E Asset 1. Property 2. Delivery vans 3. Warehouse 4. Trademark 5. New engine 6. Franchise 7. Software license 8. Computers 9. Production plant worl Nature Cost Allocation. los301 na 000 B Building stil luisen baian E25 s Equipment svil 29C1 of [ 1sdot50 mcht amor Intangible Land usuborg 16-2 Tot $43.500) and is depre List noitsibergs Nature Tu bommes no pend) oule NO A prilbrans Cost Allocation 1911 530 Depreciation 22.2.28 No cost allocation soy incrupinal no A Amortization myrups are 09-8 LO 9-1
- Choose the appropriate definition for each term. Term Amortization Useful life Licensing right Least and latest rule Component allocation Fixed asset turnover ratio Depreciable cost Copyright Depreciation schedule Revenue expenditures 2 DefinitionDepreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable assetWhen intangible assets are self-generated, costs incurred in 3. the development phase are capitalized. b. capitalized only to extent of the limits provided under the standards. a. expensed or capitalized, as a matter of accounting policy choice and professional judgment. d. expensed immediately, unless they meet all of the conditions for capitalization under PAS 38 Intangible assets. С. A Identify the type of the following costs: These include costs of searching new knowledge and identifying and selecting possible alternatives. These include costs of designing from selected alternative and using knowledge gained from research. a. Research costs, Development costs b. Development costs, Research costs c. R&D, Intangible asset costs I. II.