International Accountancy Quiz Question from Test Bank
* Question 1
2.5 out of 2.5 points | | | The following inventory information above was taken from the records of BlobeKom Ltd.:Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder U.S. GAPP, what should the Balance Sheet report for Inventory?Answer | | | | | Selected Answer: | $9,000 | | | | | * Question 2
2.5 out of 2.5 points | | | How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?Answer | | | | | Selected Answer: | It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet. | | | | | * Question 3
2.5 out of 2.5 points | | | The following inventory information above was taken from the records of BlobeKom Ltd.:Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder IAS 2, what should the Balance Sheet report for Inventory?Answer | | | | | Selected Answer: | $9,500 | | | | | * Question 4
2.5 out of 2.5 points | | | Under IAS 16 (Property, Plant, and Equipment), subsequent revaluation decreases are:Answer | | | | | Selected Answer: | first recognized as a reduction in any related revaluation surplus | | | | | * Question 5
2.5 out of 2.5 points | | | Which of the following is generally true about the differences between U.S. GAAP and IASB standards?Answer | | | | | Selected Answer: | U.S. GAAP tends to be more rule-based, and the IASB standards tend to be principles-based. | | | | | * Question 6
2.5 out of 2.5 points | | | The “Seventh Directive” issued by the European Commission is a statement to the European Union (EU)
2.5 out of 2.5 points | | | The following inventory information above was taken from the records of BlobeKom Ltd.:Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder U.S. GAPP, what should the Balance Sheet report for Inventory?Answer | | | | | Selected Answer: | $9,000 | | | | | * Question 2
2.5 out of 2.5 points | | | How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?Answer | | | | | Selected Answer: | It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet. | | | | | * Question 3
2.5 out of 2.5 points | | | The following inventory information above was taken from the records of BlobeKom Ltd.:Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal profit margin 10% of selling priceUnder IAS 2, what should the Balance Sheet report for Inventory?Answer | | | | | Selected Answer: | $9,500 | | | | | * Question 4
2.5 out of 2.5 points | | | Under IAS 16 (Property, Plant, and Equipment), subsequent revaluation decreases are:Answer | | | | | Selected Answer: | first recognized as a reduction in any related revaluation surplus | | | | | * Question 5
2.5 out of 2.5 points | | | Which of the following is generally true about the differences between U.S. GAAP and IASB standards?Answer | | | | | Selected Answer: | U.S. GAAP tends to be more rule-based, and the IASB standards tend to be principles-based. | | | | | * Question 6
2.5 out of 2.5 points | | | The “Seventh Directive” issued by the European Commission is a statement to the European Union (EU)