Question

e first step to recording the disposal? - When derecognizing a long-lived asset, what is the first step to record A. Update depreciation B. Calculate the carrying amount C Calculate the gain/loss on disposal D. Record the disposal E. Prepare financial statements 23. The 3 main types of business activities are: A. Service, manufacturing & retail B. Research & development production & customer service C. Sales, marketing, & human resource management D. Financing, investing, & operating E. Strategy, logistics, & cash flow management 24. Which of the following depreciation methods uses rest the following depreciation methods uses residual to determine depreciable amounts? A. Straight-Line B. Diminishing-Balance C. Units-of-Production D. Both A&B E. Both A&C 25. Which financial statement is prepared first? A. Statement of financial position B. Income statement C. Statement of change in equity D. Statement of cash flows E. It does not matter, financial statements can be prepared in any order 26. Which of the following would not appear on a statement of financial position? A. Interest Payable B. Cost of Goods Sold C. Accumulated Amortization D. Equipment E. Unearned Revenue 27. Of the following, which of the following is always classified as a non-current? A. Sales Tax Payable B. Deferred Revenue C. Long-term debt D. Provisions E. Prepaid Expenses

Answer 1

Answer with explanation is given below

22 Answer is Option A) Depreciation is updated first Then carrying amount is calculated and gain/loss is calculated on disposal by comparing sale value with carrying value 23 Answer is Option D) Option A is type of business Option B and C are different functions of an organisation Option E is not the right answer 24 Option E A&C Straight line and units-of-production method reduce residual value from the cost of asset and net cost is divided by life of asset and total production over life time respectively Diminishing balance does not take residual value into account 25 Option B Order of preparing financial statement 1 Income statement 2 Statement of changes in equity 3 Statement of financial position 4 Statement of cash flows 26 Option B Cost of goods sold would appear in Income statement Rest all will appear in statement of financial position Interest payable- Current liabilities Accumulated Amortization-reduced from Intangible in asset side Equipment - Asset Unearned Revenue - Current Liabilities 27 Optionc Long term debt is non current All other option are reported as part of current liabilities