Non-current Assets

15 Questions | Total Attempts: 477

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Non-current Assets - Quiz

This questions covered the fitsr topic of our course.


Questions and Answers
  • 1. 
    Which of the following assets is not an intangible asset?
    • A. 

      Brand name

    • B. 

      Inventory

    • C. 

      Goodwill

    • D. 

      Patent

  • 2. 
    Which of the following statements, relating to intangible assets is / are correct? a) Research on market potential, prior to launching a product, can be capitalised b) Applied research, calculated to achieve a stated aim, can be capitalised. c) An asset should never be capitalised if it has no physical existence d) A resource, though intangible, may be capitalised, if it qualifies to be capitalised if it is identifiable and meets the capitalisation criteria   
    • A. 

      B and c

    • B. 

      A only

    • C. 

      A & d

    • D. 

      D only

  • 3. 
    Which of the following qualities should an asset possess for it to qualify for recognition as an asset? a) It should have physical existence b) It should be within the entity’s control c) It should always be separable i.e. realizable without selling the whole business d) There should be a probability of future economic benefit from it 
    • A. 

      C & d

    • B. 

      B & d

    • C. 

      A & b

    • D. 

      B & c

  • 4. 
    Which of the following is an example of an intangible asset?
    • A. 

      Patent

    • B. 

      Goodwill

    • C. 

      Copyrights

    • D. 

      All of the above

  • 5. 
    Lady Dutch Sdn.Bhd buy an office equipment . Calculate the cost involved.    i.            Printer – RM230    ii.            Computer – RM2000   iii.            Photostat machine – RM800   iv.            Table and chairs – RM500
    • A. 

      RM 2730

    • B. 

      RM2500

    • C. 

      RM1300

    • D. 

      RM3030

  • 6. 
    On 1 January 2005, Seri Setia Sdn.Bhd. purchase a machine at a cash price of      RM  60000. Other expenditure consisted of handling cost RM700, installation cost RM3000 and delivery cost RM2000. What the cost of the machine as at 1 January 2005?
    • A. 

      RM 63000

    • B. 

      RM 65700

    • C. 

      RM 3700

    • D. 

      RM 5700

  • 7. 
    Which one is not include in depreciation convention?
    • A. 

      Monthly basis

    • B. 

      Term basis

    • C. 

      Full year`s depreciation in the year of purchase, no depreciation in the year of disposal.

    • D. 

      Units of production method

  • 8. 
    Fixed assets can be categorized into tangible assets,intangible assets and natural resources.                                                                                                   
    • A. 

      True

    • B. 

      False

  • 9. 
    This method result in a decreasing charge over the useful life of the asset.This is reducing balance method.                                                                           
    • A. 

      True

    • B. 

      False

  • 10. 
    Concept of DEPLETION is an accounting and tax term referring to deductions made to account for land becoming less valuable because of the removal of natural resources, including timber and geothermal deposits of hot water or hot rocks.
    • A. 

      True

    • B. 

      False

  • 11. 
    An asset's useful life is the same as its physical life  
    • A. 

      True

    • B. 

      False

  • 12. 
    The cost of land includes all normal , reasonable , and necessary expenditure to obtain the land and get it ready for use.
    • A. 

      True

    • B. 

      False

  • 13. 
    One company might depreciate a new computer over three years while another company might depreciate the same model computer over five years...and both companies are right. 
    • A. 

      True

    • B. 

      False

  • 14. 
    Depreciation Expense is shown on the income statement in order to achieve accounting's matching principle.
    • A. 

      True

    • B. 

      False

  • 15. 
    When disposal of assets occurs, debit  ________ account, credit  fixed assets account.
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