Chapter 3- KTQT

A. valuation.

B. cost allocation

C. cash accumulation

D. appraisal

A. revenue expenditures.

B. debited to the Maintenance and Repairs Expense account.

C. debited to the Purchases account.

D. capital expenditures.

A. If an intangible asset has a finite life, it should be amortized DA.

B. The amortization period of an intangible asset can exceed 20 years.

C. Goodwill is recorded only when a business is purchased.

D. Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.

A. Debit Non-current asset – Cost/ Credit Receivables

B. Debit Payables/ Credit Non-current asset – Cost

C. Debit Non-current asset – Cost/ Credit Payables

D. Debit Non-current asset – Cost/ Credit Revaluation Surplus

A. Expenditure on non-current assets, including repairs and maintenance

B. Expenditure on expensive assets

C. Expenditure relating to the issue of share capital

D. Expenditure relating to the acquisition or improvement of non-current assets

A. A replacement for a broken window

B. Repainting the restaurant

C. An illuminated sign advertising the business name

D. Cleaning of the kitchen floors

A. Road tax

B. Number plates

C.Fitted stereo radio

D. Delivery costs

A. A tax refund due next year

B. A motor vehicle held for resale

C. A computer used in the office

D. Cleaning products used to clean the office floors

A. 1 and 3 only

B. 1 and 2 only

C. 2 and 3 only

D. All three statements are correct

A. To allocate the cost of an intangible non-current asset over its useful life

B. To ensure that funds are available for the eventual purchase of a replacement non-current asset

C. To reduce the cost of an intangible non-current asset in the statement of financial position to its estimated market value

D. To account for the risk associated with intangible assets