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51. Which of the following items are excluded from the explanation of the relationship between income tax expense and prima facie tax on profit (ie accounting profit multiplied by the applicable rate)? I Building depreciation II Bad debts expense III Exempt income IV Loss from change in tax rate V Annual leave expense VI Entertainment expense
I and VI.
II and VI.
II and V.
I, III, IV, and VI.
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52. The revaluation under AASB 116 Property, Plant and Equipment apply to:
all assets on an individual basis;
individual current assets only;
individual non-current assets only;
assets on a class-by-class basis;
53. A non-current property, plant, and equipment asset is depreciated using the straight-line method. The asset was revalued upwards after four years of use. There is no change in the remaining useful life of six years or to the residual value. Which of the following relationships reflect the effect of the revaluation on the prospective depreciation of the asset?
Same depreciation rate – higher annual depreciation expense;
Same depreciation rate – same annual depreciation expense;
Higher depreciation rate – higher annual depreciation expense;
Higher depreciation rate – same annual depreciation expense;
54. The accepted method of accounting for a business combination under AASB 3 Business Combinations is:
the purchase method;
the cost method;
the acquisition method;
the fair value method;
55. Which of the following statements about the requirements of AASB 3 Business Combinations is incorrect?
An acquirer to be identified.
Goodwill acquired to be recognized.
The assets, liabilities, and contingent liabilities to be measured initially at cost at the acquisition date.
Disclosure of information that enables users to evaluate changes in the carrying amount of goodwill.
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