IAS 16/AASB 116 Defines the Cost of Acquisition for Fixed

question 24

Multiple Choice

IAS 16/AASB 116 defines the cost of acquisition for fixed assets as:

• A) purchase cost plus any incidental costs directly attributable to acquiring the asset and getting it ready for use.
• B) invoice cost.
• C) carrying value in the previous owner's books.
• D) invoice cost plus freight inwards, plus other costs of acquiring the asset.

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Definitions:

Skeletal Muscle Tissue

A type of muscle tissue that is attached to bones and responsible for voluntary movements.

Smooth Muscle Tissue

A type of muscle tissue found in various organs, such as the stomach, intestines, and blood vessels, that is not under conscious control.

Orbicularis Oris

A circular muscle around the mouth that controls the movements of the mouth and lips, crucial for speech and facial expressions.

Orbicularis Oculi

A muscle in the face that encircles the eye, responsible for enabling blinking and squinting.