When a foreign entity has the foreign currency as its functional currency, it uses which exchange rate to translate revenues and expenses in the income statement? Under IFRS, when an asset is revalued upwards, subsequent depreciation is based on All of the following are consistent with the purpose of determining the useful life of a long-lived asset except: When a foreign entity has the U

1. When a foreign entity has the foreign currency as its functional currency, it uses which exchange rate to translate revenues and expenses in the income statement?

the average exchange rate during the period

2. Under IFRS, when an asset is revalued upwards, subsequent depreciation is based on

the assets fair value

3. All of the following are consistent with the purpose of determining the useful life of a long-lived asset except:

using the information to manage earnings upward.

4. When a foreign entity has the U.S. dollar as its functional currency, it uses which exchange rate to translate monetary assets and liabilities?

the end of period exchange rate

5. When dividends from an investment are recognized as income, the investment must have been of which type?

Minority, Passive Investment

6. Firms recognize an impairment loss when the carrying amount of a tangible fixed asset is deemed "not recoverable" as specified by GAAP. GAAP defines a carrying amount as "not recoverable" if

it is greater than the sum of the undiscounted cash flows expected from the asset's use and disposal.

7. All of the following are typically costs that fail the future benefits test of long-lived operating assets except:

costs of equipment used in production

8. Which one of the following is an example of the expected benefit approach for valuing long-lived assets?

Discounted present value

9. Managers are typically faced with all of the following primary choices and estimates when allocating acquisition costs of tangible assets and intangible assets to the periods benefited except:

establishing a reserve for obsolescence

10. Which of the following is the least effective way for an analyst to understand whether existing long-lived assets must be replaced?

calculate the percentage of ownership the firm has in another entity