Reference no: EM132698769

Problem 1: Government entities recognize depreciation

a. on a weekly basis.
b. on a monthly basis.
c. only at year-end.
d. any of these as a matter of accounting policy choice.

Problem 2: Entity A, a government entity, acquires an equipment on December 16, 20x1. Which of the following is correct?

a. The equipment will not be depreciated in the current year.
b. The equipment will be assigned a residual value of 15%.
c. The equipment will be classified as inventory if it has a cost of less than ?25,000.
d. The equipment will only be depreciated for 2 weeks in the current year.

Problem 3: According to the GAM for NGAs, to qualify as intangible asset, an item must possess all of the following elements except

a. Identifiability
b. Held for distribution
c. Control over a resource
d. Existence of future economic benefits or service potential

Problem 4: According to the GAM for NGAs, an intangible asset is identifiable when it

a. is separable, i.e., capable of being separated and divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so.
b. arises from binding arrangements including contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.
c. a or b
d. a and b