IFRS permits firms to remeasure property, plant, and equipment upward for increases in fair value under certain conditions

Indicate whether the statement is true or false


T

Business

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An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10years with a residual value of $10,000 . At the beginning of the third year, it was determined that the remaininguseful life of the asset was only 4 years with a residual value of $2,000 . Calculate the third-year depreciationexpense using the revised amounts and straight-line method

a. $24,000 b. $25,000 c. $11,000 d. $24,500

Business

Verilux Company sold merchandise to Flight Corp on November 1, 2014, for $10,000 . Verilux accepted a promissory note from Flight Corp for $10,000 . The note has a term of 5 months and a stated interest rate of 7%. Verilux's accounting period ends on December 31, 2014 . What amount should Verilux recognize as interest revenue on December 31, 2014?

a. $ -0- b. $ 116.67 c. $ 291.67 d. $ 280.00

Business

When Ringler set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

A) concept testing B) marketing strategy C) idea screening D) business analysis E) commercializing

Business

The American Federation of Labor arose out of frustration with:

A. The National Labor Union's focus on craft unionism, which excluded industrial workers from its ranks. B. The Knights of Labor's failure to address everyday working issues. C. The Industrial Workers of the World's militant organizing tactics. D. The CIO's exclusive focus on industrial unionism.

Business