Wiley Flashcards
Initial direct costs incurred by lessor under a sales type lease sb:
A. Deferred and allocated over econ life
B. Expensed in the period incurred
C. Deferred and allocated over term of lease
D. Added to gross investmt in the lease
Intital direct costs are part of cost of sales.
Initial direct costs incurred by lessor sb expensed as incurred
Under IFRS which is the def of a provision?
A. A liability that is uncertain in timing or amt
B. A liability that has definitely been incurred
C. An asset tt is uncertain as to it’s FV
D. An asset tt is certain as to value
Provisions are liabilities
A provision is defined under IFRS as a liability that is uncertain in timing or amt
F/S in accordance with IFRS. Cash advances and loans from bank overdrafts. How should these items be reported on SCF?
A. Operating activ
B. Investing activ
C. Financing activ
D. Other significant noncash activ
These are not classified as financing activ.
IFRS req cash advances and loans from bank overdrafts to be classified as operating activ.
In SCF, interest pymt to lenders and other creditors sb classified as cash outflow for:
A. Operating activ
B. Borrowing activ
C. Lending activ
D. Financing activ
Operating activ section of SCF parallels IS
Interest pymts are classified as cash flow for operating activ
The impairment rules for long lived assets apply to all except:
A. Bldgs currently used in the business
B. Financial instruments
C. Land
D. Minicomputers used to run product process
ASC Topic 360 on impairment applies to FX assets
The standard does not apply to financial instruments
SCF: operating, investing, and financing activ.
All the following sb classif as investing activ except:
A. Purch manuf equipmt
B. Sale of bonds of other entities
C. Outflow to lenders for interest
D. Sale of manuf equipmt
C. Outflow to lenders for interest
Investing activ relates to invest in ppe, and securities
