QUESTION ANSWER

1. Directly attributable expenditures Professional fees for legal services,

related to investment property property transfer taxes and other
include  transaction cost.
2. The period of time during which the asset is substantially complete and
interest must be capitalized ends ready for its intended use
when 
3. Which accurately describes the Full cost method
GAAP regarding the accounting for
the costs of drilling dry holes in the
oil and gas industry? 
4. Cash surrender value is classified as Intangible asset
5. It is any contract that evidences Equity instrument
residual interest in the assets of an
entity after deducting all of the
liabilities 
6. In the case of grant related income, Present the grant in the income
which of the following accounting statement as other income or as a
treatment is prescribed? separate line item or deduct it from
the related expense.
7. Upon death of an officer an entity Proceeds received less cash surrender
received the proceeds of a life value
insurance policy held by the entity
on the officer. The policy's cash
surrender value had been recorded
by the entity at the time of payment.
What amount of revenue should the
entity report in its income
statement?
8. The interest income for the year A premium
would be lower if a bond is
purchased at
9. A building suffered uninsured fire Capitalize the cost of refurbishing and
damage. The damaged portion of the record a loss in the current period
building was refurbished with higher equal to the carrying amount of the
quality materials. The cost and damaged portion of the building.
related accumulated depreciation of
the damaged portion are identifiable.
To account for these events, the
entity shall
10. A debt investment shall be measured When the business model is to collect
subsequently at amortized cost  contractual cash flows that are solely
payments of principal and interest.
11. An entity using composite  Cash proceeds received
depreciation method for a fleet of
trucks, cars and campers retired one
of the trucks and received cash from
a salvage entity. The net carrying
amount of these composite asset
accounts would be decreased by the
12. When assets such as land and the purchase cost should be allocated
buildings are acquired for a lump between land and buildings on the
sum basis of their respective fair values.
13. How should preference shares that Either current or noncurrent
are redeemable mandatorily be financial liability depending on
presented in the statement of redemption date
financial position? 
14. Capitalization of borrowing costs Extended periods in which active
shall be suspended during development is interrupted
15. The revaluation surplus that is  Retained earnings
realized because of the use of the
asset or disposal of the asset may be
transferred directly to 
16. When an entity chooses the When an asset is revalued, the entire
revaluation model for property, class of property, plant and
plant and equipment, which equipment to which that asset belongs
statement is true? must be revalued.
17. Additions to plant assets are capital expenditures
18. A discount for prompt payment for as a credit to the asset account
property or plant acquired should be
recognized 
19. The interest method of amortizing Increasing amortization and
premium provides for increasing interest income
20. What is the method of amortizing The straight line method, unless the
intangible asset?  pattern of the economic benefits can
be determined reliably
21. Which condition must be met for an The item is nonmonetary, identifiable
item to be recognized as an and lacks physical substance.
intangible asset other than goodwill?
22. Which is not a category of financial Financial assets held for sale
assets?
23. Government grant related to Over the useful life of the asset and in
depreciable asset is usually proportion to the depreciation of the
recognized as income asset.
24. An impairment loss is the excess of Present value of the expected cash
the carrying amount of the debt flows
investment over 
25. When there is a change in estimated current and future years' depreciation
depreciation should be revised
26. Which of the following is not a Information about commercial
disclosure required in relation to reserve quantity
exploration and evaluation
expenditures? 
27. Indicate which of the following Totals of major classes of assets can
statements is true. be shown in the statement of financial
position, with asset details disclosed in
the notes to the financial statements.
28. All of the following are examples of Inventories that are routinely
qualifying assets except  manufactured or otherwise produced
 in large quantities on a repetitive
basis over a short period of time.
29. A machine with a four-year Original cost x 50%
estimated useful life and an
estimated 15% residual was
acquired at the beginning of the
current year. The increase in
accumulated depreciation for the
second year using the double
declining balance method would be