quiz 11 ch11 key

quiz 11 ch11 key - Discounted Future cash flows future cash...

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Quiz 11 (Ch 11) key 1. A method that ignores salvage value in the early years of the asset’s life in calculating periodic depreciation expense is the 1. productive-output method. 2. straight-line method. 3. double-declining-balance method. 4. None of the above 2. When the estimate of an asset's useful life is changed, 1. depreciation expense for all past periods must be recalculated. 2. there is no change in the amount of depreciation expense recorded for future years. 3. only the depreciation expense in the remaining years is changed. 4. None of the above are true. 3. A company has an asset with a book value of $10. Which of the following cases has the most different result in recognizing the impairment loss between the U.S GAAP and the International Standards? Undiscounted
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Unformatted text preview: Discounted Future cash flows future cash flows 1. 12 8 2. 18 12 3. 9 4 4. All have the same results. 4. Which of the following statements is not true for IAS practice? 1. Impairment loss is reversed when the asset is no longer impaired. 2. Impairment loss is the book value over the recoverable value. 3. Revaluation is allowed. 4. Revaluation reserve account is an income statement account. 5. When assets are exchanged at a loss in an exchange lacking commercial substance, the basis of recording the new asset is usually 1. the undiscounted future cash flows from using the old asset. 2. the book value of the old asset plus any cash paid on the trade-in . 3. the fair market value of the new asset. 4. Either b or c....
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This note was uploaded on 12/07/2009 for the course ACCT ACCT 203 taught by Professor Kim during the Fall '09 term at HKUST.

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