Chapter 10 - Test Bank - CHAPTER 10 ACQUISITION AND DISPOSITION OF PROPERTY PLANT AND EQUIPMENT IFRS questions are available at the end of this chapter

Chapter 10 - Test Bank - CHAPTER 10 ACQUISITION AND...

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CHAPTER 10ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND EQUIPMENT IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer No. Description F 1. Nature of property, plant, and equipment. T 2. Nature of property, plant, and equipment. F 3. Cost of removing old building. T 4. Insurance on equipment purchased. F 5. Accounting for special assessments. T 6. Overhead costs in self-constructed assets. F 7. Overhead costs in self-constructed assets. F 8. Interest capitalization. F 9. Qualifying assets for interest capitalization. T 10. Avoidable interest. T 11. Interest capitalization on land purchase. T 12. Deferred-payment contracts. T 13. Accounting for nonmonetary exchanges. F 14. Nonmonetary exchanges. F 15. Recognizing losses on nonmonetary exchanges. T 16. Costs subsequent to acquisition. T 17. Definition of improvements. F 18. Ordinary repairs benefit period. F 19. Involuntary conversion gains/losses. T 20 Loss from scrapped asset. MULTIPLE CHOICE—Conceptual Answer No. Description d 21. Definition of plant assets. b 22. Characteristics of plant assets. d 23. Characteristics of plant assets. c 24. Composition of land cost. c 25. Composition of land cost. c 26. Determination of land cost. d 27. Determine cost of land used as a parking lot. a 28. Determine cost of machinery. b 29. Classification of fences and parking lots. b S30. Recording plant assets at historical cost. d S31. Accounting for overhead costs. d 32. Determine costs capitalized for self-constructed assets. d 33. Assets which qualify for interest capitalization. a 34. Assets which qualify for interest capitalization. c 35. Definition of "avoidable interest." a 36. Period of time over which interest may be capitalized. b 37. Maximum amount of annual interest that may be capitalized.
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Test Bank for Intermediate Accounting, Fourteenth Edition 10 - 2 MULTIPLE CHOICE—Conceptual (cont.) Answer No. Description b 38. Interest capitalization—weighted-average factor. d 39. Classification of interest earned on securities purchased with borrowed funds. d 40. Write-off of capitalized interest costs. c S41. Conditions for interest capitalization. a S42. Capitalization of interest on constructed assets. c S43. Nonmonetary exchanges and culmination of earning process. a S44. Recognizing gains/losses in exchange having commercial substance. a S45. Valuation of nonmonetary asset. b P46. Gain recognition on plant asset exchange. c 47. Valuation of plant assets. d 48. Plant asset acquired by issuance of stock. d 49. Valuation of nonmonetary exchanges. a 50. Gain recognition on a nonmonetary exchange. c 51. Gain recognition on a nonmonetary exchange. b 52. Accounting for donated assets. b 53. Valuation of donated assets. d 54. Identify conditions for capital expenditures. c 55. Capital expenditure. d 56. Identification of a capital expenditure.
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