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true?
Non-vesting sick leave that has accumulated will be paid to employees when their
employment ceases.
Any employee benefits that have been earned but not paid as at the reporting
date are assets of the employer.
In a defined contribution plan, the employer effectively bears the risks associated
with the movements in the value of the superannuation plan set up for its
employees.
Question 2
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According to IAS 16, which of the following items is not considered capitalisable
cost of property, plant & equipment?
Professional fees.
Question 3
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Zion Ltd purchased an equipment on 1 January 2020 for $42 000. It was
estimated that it would have a useful life of 4 years and operate for 35 000 hours
over its life. The asset's residual value is estimated at $5000. Other similar assets
are depreciated on a reducing balance method at 35% rate. Which of the following
statement is correct for year ending 31 December 2020?
If the reducing balance method is used, depreciation expense is $14 800 and if
the sum of digits method is used, depreciation expense is also $14 800.
Question 4
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In the case of a share issue being oversubscribed, excess application monies:
Question 5
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Darius Ltd acquires some machinery at a cost of $150 000 on 1 July 2019. On 30
June 2020, the machinery, which has an accumulated depreciation balance of $20
000, is assessed as having a fair value equal to $100 000. Darius Ltd carries
machinery at fair value. Which of the following journal entries will be made to
record the revaluation of machinery?
Question 6
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Which of the following statements is not true?
If an entity performs a share split on a partly paid share, the split must be done in
such a way as to divide the uncalled portion equally among the shares issued.
Question 7
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Which of the following statements is not true?
The revaluation model requires all intangible assets in the same class to have a
fair value determined by reference to an active market.
IAS 38 states that intangible assets may be measured by using either the cost
model or the revaluation model.
The cost of a separately acquired intangible asset includes its purchase price and
directly attributable cost for preparing the asset for its intended use.
Question 8
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Unidentifiable intangible assets are those that cannot be separately sold. Which of
the following set of items are examples of unidentifiable intangible assets?
Question 9
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Which of the following groups of items is not classified as intangible assets?
Performance events, literary works, musical works, pictures, motion pictures and
television programs.
Lease agreements, broadcast rights, employment contracts, and use rights (such
as drilling rights or water rights).
Question 10
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Failure to record the year-end adjustment for amortization will result in: