Question

Question 5 Depreciation expense and impairment losses are presented in the non-operating section of the income statement. the operating section of the income statement. the non-operating section and operating section of the income statement, respectively. O the operating section and non-operating section of the income statement, respectively.

Answer 1

Question 5.

The correct answer is OPTION A i.e the non-operating section of the income statement.

Explanation

Operating expenses are such expenses which are incurred on day to day basis while carrying out business activities.
example : cost of raw material, cost of labour, etc.

Non-operating expenses are such expenses which are not related to day-to-day activities.
example : interest expenses, depreciation expenses, etc.

So, depreciation expenses and impairment losses are such an expenses which are always to be presented in the non-operating section of the income statement.

Other options are not correct related to depreciation expenses and impairment losses.

Question 7.

The correct answer is OPTION C i.e amortized and tested periodically for impairment.

Explanation

Finite intangible assets are such assets which have a limited period before they are not eligible for further use.
They are treated as fixed tangible assets whose costs are to be amortized and tested periodically for impairment.

So, the correct answer is OPTION C i.w amortized and tested periodically for impairment.

Other options are incorrect about finite intangible assets.