Chương 9: TSCĐ - Sử dụng và tổn thất Flashcards
1. Expenditures which are incurred after a fixed asset is recognized in the financial statement (called “subsequent expenditures”) are always capitalized in the value of asset?
True
False
False
2. Subsequent expenditures should be capitalized in the value of a fixed asset when
It is probable that the expenditures increase the future economic benefit of the asset
The expenditures rehabilitate the asset
It is probable that the expenditures increase the future economic benefit of the asset
3. Depreciation, depletion, and amortization are
Method of valuation of fixed assets
Cost allocation processes
Cost allocation processes
4. Under VAS, the total amount which should be depreciated during useful life of an asset is
Cost
Cost less (-) residual value at the end of its useful life
Cost less (-) residual value at the end of its useful life
5. Under VAS, which depreciation method is NOT allowed?
Sum of the year’ digits
Units of production
Straight line
Declining balance
Sum of the year’ digits
6. Which depreciation method results in the same amount of depreciation in each year of asset’s service life
Sum of the year’ digits
Units of production
Straight line
Declining balance
Straight line
7. Which time-based depreciation method results in greater amount in the early years and less each succeeding year of the asset’s life?
Units of production
Straight line
Declining balance
Declining balance
8. Which depreciation method is based on activity level of fixed asset?
Declining balance
Units of production
Straight line
Units of production
9. Under VAS, which asset should not be depreciation/amortized?
Permanent Land Use Right
Buildings
Equipment
Patent
Permanent Land Use Right
10. Under Vietnamese regulation, Account “214” ending balance shows:
Accumulated depreciation
Depreciation expense incurred in one period
Accumulated depreciation
11. How the financial status of a company is affected by the depreciation of an fixed asset which used for administrative purpose?
Asset decrease, Expense increase
There would be no effect
Asset increase, Expense decrease
Asset decrease, Expense increase
12. How the cash flows of a company is affected by the depreciation of an fixed asset which used for administrative purpose?
Asset decrease, Expense increase
There would be no effect
Asset increase, Expense decrease
There would be no effect
13. Any change in depreciation method or depreciation estimation should be applied:
Retrospectively
Prospectively
Depreciation method and estimation are not allowed to change
Prospectively
14. What differentiate the International standards from Vietnam standards in accounting method for property, plant and equipment?
Under international standards, both the cost model and revaluation model are allowed
Under international standards, test for impairment when events or changes in circumstances indicate that book value may not be recoverable
Both are correct
Both are correct
