FAR Exam F1 MCQ Questions & Answers 2023/2024

FAR Exam F1 MCQ Questions & Answers 2023/2024 Replacement cost - ANSWER-Amount of cash or its equivalent that would be paid to acquire or replace an asset currently. It is also an acquisition cost Current Market Value - ANSWER-cost to sell (not acquire) an asset. AKA fair value On December 31, year 1, Brooks Co. decided to end operations and dispose of its assets within three months. At December 31, year 1, the net realizable value of the equipment was below historical cost. What is the appropriate measurement basis for equipment included in Brooks' December 31, year 1 balance sheet? Historical cost. Current reproduction cost. Net realizable value. Current replacement cost. - ANSWER-NRV because of the decision to end operations and quickly dispose of its assets. Historical cost is appropriate if operations were continuing Under IFRS, which of the following would be included in income from continuing operations on the income statement? I.A large loss from a foreign currency transaction. II.A union strike that shuts down operations for three months. III.A foreign government takes possession of a company's only plant. IV.Damage to a factory due to an earthquake in an area that had not previously experienced earthquakes. a.I, II, III, IV. b.I, II, IV .c.I, II. d.III, IV. - ANSWER-Choice "a" is correct. Under IFRS, all of these items would be included in income from continuing operations. Note that treatment of these items is the same under U.S. GAAP.