Reference no: EM132787758

Problem 1: This type of budget is prepared in such a way that estimated revenues exceed estimated expenditures.

a. Obligations budget

b. Budget meal

c. Excess budget

d. Balanced budget

Problem 2: When determining depreciation, an entity considers all of the following except

a. Expected residual value at the end of the asset's useful life

b. Initial cost

c. Useful life

d. Whether the asset is classified as with finite or indefinite useful life.

Problem 3: Entity A exchanges an item of PPE with Entity B. How should Entity A account for any cash paid or received from the exchange?

a. Account for any cash paid or received in gain or loss but not on the initial measurement of the asset received.

b. Add the cash paid to the initial measurement of the asset received.

c. Add the cash received to the initial measurement of the asset received.

d. Deduct the cash paid from the initial measurement of the asset received.