Question 6:Current assets under IFRS are listedgenerally: a)by importanceb)alphabeticallyc)in the reverse order of their expected conversion to cash d)by importance Question 7:KLM Corporation is constructing a newbuilding at a total initial cost of $10,000,000. Thebuilding is expected to have a useful life of 50 yearswith no residual value. The building’s finishedsurface (e.g., roof cover and floor cover) are 5% ofthis cost and have a useful life of 2 years. Buildingservices systems (e.g., electric, heating, andplumbing) are 20% of the cost and have a usefullife of 25 years. The depreciation in the first yearusing component depreciation, assuming straight-line depreciation with no residual value, is: 1
ISM 502 ACCOUNTING STANDARTS APPLICATION 2019-2020 Istanbul Aydin University Question 8: KLM Company applied the straight-linemethod of depreciation to its non-current assets.The cost of the buildings was $640 000, thedepreciable amount is $560 000, the residual valueis $80 000 and the useful life is 8 years. The annualdepreciation charge is: Question 9:Companies that follow IFRS to preparea statement of financial position generally use thefollowing order of classification: Question 10:Which category of user is most likelyto be interested primarily in the Statement of Profitor Loss and Other Comprehensive Income of anentity? a)suppliers and trade creditorsb)employeesc)shareholdersd)lending institutions
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- Fall '19