A.disclose how it determined the fair value of the intangible asset.
B.report lower net income in subsequent periods because of increased amortization expense on the asset.
C.report higher assets, net income, and shareholders’ equity in the most recent period than it would have reported under the cost model.
第1题
2.0 million.The present value of the machine’s future cash flows is $1.7 million.The asset is permanently impaired.Bao should (under IFRS):
A.immediately write down the machine to its salvage value.
B.immediately write down the machine to its recoverable amount.
C.write down the machine to its recoverable amount as soon as it is depreciated down to salvage value.
第2题
Under U.S.GAAP, an asset is considered impaired if its book value is:
A.less than its market value.
B.greater than the present value of its expected future cash flows.
C.greater than the sum of its undiscounted expected cash flows.
第3题
ty for rent.Based on the market for similar properties, the firm determines that the fair value of the plant is €500,000 more than its original cost.If this firm uses the cost model for plant and equipment and the fair value model for investment property, should it recognize a gain on its income statement under IFRS?
A.Yes, because the plant will be reclassified as investment property.
B.No, because the increase in value does not reverse a previously recognized loss.
C.No, because the firm must continue to use the cost model for valuation of this asset.
第4题
n method instead of using straight-line depreciation will tend to have:
A.lower net income and lower equity.
B.higher return on equity and higher return on assets.
C.lower depreciation expense and lower turnover ratios.
第5题
te?
A.advertising fees are generally expensed as incurred.
B.In most countries, research and development costs are capitalized.
C.Intangible assets are initially entered on the balance sheet at their purchase prices when they are acquired from an outside entity.
第6题
of recognizing it as an expense will result in higher:
A.debt-to-equity and debt-to-assets ratios.
B.net income and have no effect on total cash flows.
C.cash flow from investing and lower cash flow from operations.
第7题
it purchases and depreciates them over years to a value of zero.Based on the underlying economics of the DVD rental business, the most appropriate method of depreciation for the firm to use on its financial statements is:
A.straight-line.
B.declining balance.
C.units-of-production.
第8题
ration.Cleanway operates an active research and development program into environmentally friendly cleaning products.Bao is very interested in this research program as well as the good management team in place at Cleanway.The excess price paid over the net book value of the assets should be accounted for on Bao’s financial statements as:
A.goodwill.
B.a trademark.
D.an intangible asset, research and development.
第9题
oted.
A company has equipment with an original cost of $850,000, accumulated amortization of $300,000 and 5 years of estimated remaining useful life.Due to a change in market conditions the company now estimates that the equipment will only generate cash flows of $80,000 per year over its remaining useful life.The company’s incremental borrowing rate is 8 percent.Which of the following statements concerning impairment and future return on assets (ROA) is most accurate? The asset is:
A.impaired and future ROA increases.
B.impaired and future ROA decreases.
C.not impaired and future ROA increases.
第10题
es have incurred expenses of approximately $250 million in the current year to expand their production facilities.Company A is highly leveraged.Company B does not have any outstanding debt and paid the $250 million from internal cash reserves.The most likely effect of the difference in the capital structures of the two companies will be:
A.Company A will report higher asset balances related to the facilities under construction.
B.The companies will report the same asset balances related to the facilities under construction.
C.Company A’s interest coverage ratio will be lower than it would have been if the company had expensed all interest.
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