Quality Management Systems Emphasize External Failure Costs

question 46

True/False

Quality management systems emphasize external failure costs.

Recognize the implications of intragroup asset transfers, including plant and equipment, on consolidated financial statements.

Analyze the effects of intragroup transactions on non-current asset values and depreciation adjustments in consolidation.

Grasp the principles behind the treatment of advances and loans within a group for consolidation purposes.

Understand the accounting treatment of dividends in a group context, including elimination on consolidation.

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Definitions:

Residual Value

The estimated amount that an asset will realize upon its disposal at the end of its useful life, less the cost of disposal, if any.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset since it was acquired.

Gain on Sale

The profit earned from selling an asset for more than its purchase price.

Net Realisable Value

The projected sales price under normal business operations minus the anticipated expenses to complete and the estimated costs required for the sale.