Accounting - Study Mode

[#1356] The study of the effects of output volume on revenue, expenses and net income is known as
Correct Answer

(D) Cost Volume Profit Analysis

[#1357] Which one of the following statements is not correct?
Correct Answer

(D) Goodwill is a fictitious asset

[#1358] XYZ firm has imported a machine from abroad. Which of the following is NOT the element of the machine's cost?
Correct Answer

(D) Refundable tax

Explanation

Solution: XYZ firm has imported a machine from abroad. Refundable tax is NOT the element of the machine's cost.

[#1359] Which of the following foxed assets is not depreciated in the ordinary circumstances?
Correct Answer

(C) Land

Explanation

Solution: Land foxed assets is not depreciated in the ordinary circumstances. Land is not depreciated, since it has an unlimited useful life.

[#1360] In the calculation of depreciation, all of the following items are actually estimates except:
Correct Answer

(C) Historical cost

Explanation

Solution: In the calculation of depreciation, all of the following items are actually estimates except Historical cost. A historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.