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:

Telephone Calls

A form of verbal communication or data transmission over a distance through the use of a network specifically designed for this purpose.

Randomly

In a manner lacking any predictable pattern or plan, used in statistical sampling to ensure that every individual or element has an equal chance of selection.

Wavenumber

A measure of the number of wave cycles per unit distance, often used in physics and chemistry to describe the wavelengths of light and other forms of electromagnetic radiation.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.