accparc2

Which of the following is true:

• The carrying amount is equal to the difference between the purchase value and the sale value of the asset
• The carrying amount of property, plant and equipment should be derecognized when no future economic benefits are expected from their use or disposal
• The book value is equal to the difference between the sale value and the purchase value of the asset.

The basic method of cost calculation are:

• Divisional calculation
• Progress calculation
• Proportional calculation
• Operational calculation

Production costs do not include:

• Fixed selling expenses
• Direct labour costs
• General production costs
• Direct material costs

The cost of goods sold depends on:

• Depreciation
• Acquisition cost of goods
• Salary of administration workers
• Wages of workers in sales

Find the correct statement:

• In periods of rising prices, LIFO reports the highest net income, average cost the lowest and FIFO falls in the middle
• In periods of rising prices, LIFO reports the highest net income, average cost and FIFO falls in the middle
• In periods of rising prices, FIFO reports the highest net income, average cost and LIFO falls in the middle
• In periods of rising prices, average cost reports the highest net income, FIFO the lowest and LIFO falls in the middle

Inventory errors affect the determination of cost of goods sold and net income. Error of understating beginning inventory causes:

• Understated cost of goods sold, overstated income
• Overstated cost of goods sold, overstated income
• Overstated cost of goods sold, understated income
• Understated cost of goods sold, understated income

Find the incorrect statement:

• LIFO method assumes latest goods purchased are first to be sold *b) Allocation of the cost of goods available for sale in average cost method is made on the basis of the highest unit cost
• Allocation of the cost of goods available for sale in average cost method is made on the basis of the highest unit cost
• Average cost method assumes that goods available for sale are homogeneous
• FIFO method assumes earliest goods purchased are the first to be sold

According to IAS 2 consumption of materials cannot be done by applying:

• The FIFO method
• Method of specific identification
• The weighted average price method
• The LIFO method

In material accounting, the material is monitored:

• On offbalance sheet
• Quantitatively and value wise
• Only quantitatively
• Only by value

Which of the following assets has depreciation:

• Land
• Books in libraries
• Forests
• Machines