ACC 557: Accounting Principles - Week 7 Quiz on IFRS and Financial Accounting

Quiz on IFRS and financial accounting principles from Week 7.

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ACC 557: Accounting Principles - Week 7 Quiz on IFRS and Financial
Accounting

ACC 557 QUIZ WEEK 7 ANSWER

IFRS Multiple Choice Question 327

IFRS allows companies to revalue plant assets to fair value. Which of the following statements
is true regarding revaluation?

At the time a company purchases an asset it must decide whether to follow revaluation
procedures for the asset; once the election is made, it must be followed for the remainder of the
asset's useful life.

Assets that are experiencing rapid price changes must be revalued quarterly, other assets can be
revalued on an annual basis.

The journal entry to record a revaluation when the asset's price has increased includes a credit to
the account revaluation surplus.

All of the choices are correct regarding revaluation of plant assets.

Multiple Choice Question 170

An asset which costs $29,800 and has accumulated depreciation of $8,000 is sold for $21,600.
What amount of gain of loss will be recognized when the asset is sold?

A loss of $200.

A loss of $8,200.

A gain of $200.

A gain of $8,200.

Multiple Choice Question 86 The book value of an asset is equal to the

asset's fair value less its historical cost.

asset's cost less accumulated depreciation.

blue book value relied on by secondary markets.

replacement cost of the asset.

Multiple Choice Question 186 Intangible assets are the rights and privileges that result from
ownership of long-lived assets that
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Document Details

University
Strayer University
Subject
Accounting

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