CFASand z

What type of asset is property, plant, and equipment classified as?

• Intangible

• Tangible

• Current

• None of these

Which of the following is NOT a characteristic of property, plant and equipment?

• Used in production or supply of goods/services

• Used for resale

• Expected to be used for more than one year

• Used for administrative purposes

What is the primary criterion for recognizing an item as property, plant, and equipment?

• It is resalable

• It has market value

• Future economic benefits will flow to the entity

• It is an intangible asset

At initial recognition, how is property, plant and equipment measured?

• At fair value

• At cost

• At carrying amount

• At residual value

Which of the following is NOT an element of the cost of PPE?

• Purchase price

• Advertising expense

• Installation cost

• Professional fees

What term describes costs like delivery and site preparation that are added to PPE cost?

• Indirect costs

• Deferred charges

• Directly attributable costs

• Fixed costs

Which of the following is NOT directly attributable to the cost of PPE?

• Site preparation

• Employee benefits during construction

• Testing the asset

• Staff training

When property is acquired in exchange for shares, what is the first basis for valuation?

• Par value of shares

• Fair value of shares

• Fair value of property received

• Face value of shares issued

Which model carries PPE at cost less accumulated depreciation and impairment?

• Fair value model

• Cost model

• Depreciation model

• Revaluation model

What does the revaluation model use to value PPE?

• Invoice price

• Carrying amount

• Revalued amount less

• Original purchase price