In Accordance with AASB 116,under the Cost Model,the Carrying Amount

question 54

Multiple Choice

In accordance with AASB 116,under the cost model,the carrying amount of property,and equipment should be greater than:

• A) Historical cost.
• B) Recoverable amount
• C) Revalued amount.
• D) Depreciable amount.
• E) None of the given answers.

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Definitions:

Withdrawals

A subdivision of owner’s equity that records money or other assets an owner withdraws from a business for personal use.

Vouchers Payable

Short-term obligations or liabilities that represent amounts owed to suppliers or creditors, which are supported by documentary evidence of the transaction.

Accounts Payable

Liabilities or amounts owed to creditors for goods and services that have been received but not yet paid for by the business.

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts at the time of purchase.