A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item 'gain on sale of equipment'. This item will be shown in the statement of

• A.changes in equity.
• B.cash flow.
• C.financial position.
• D.comprehensive income.

Comment: *

Name: *

Email: *

Verification: *

Historical cost accounting provides financial information that is

• A.reliable but may not be relevant for decision making.
• B.relevant but may not be reliable for decision making.
• C.relevant and reliable for decision making.
• D.relevant for decision making.

Comment: *

Name: *

Email: *

Verification: *

Which one of the following is an accurate definition of fair value of an asset?

• A.The price for which an asset could be sold net of disposal costs.
• B.The cost of replacing an asset with an identical item.
• C.The amount yet to be written off over the remainder of the asset's useful life.
• D.The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.

Comment: *

Name: *

Email: *

Verification: *