Capital and revenue items 3 / 7

Specimen
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MC Question 1

Which of the following should be capitalised in the initial carrying amount of an item of plant?

(1)

Cost of transporting the plant to the factory

(2)

Cost of installing a new power supply required to operate the plant

(3)

Cost of a three-year plant maintenance agreement

(4)

Cost of a three-week training course for staff to operate the plant

A       1 and 3
B       1 and 2
C       2 and 4
D       3 and 4

Reveal answer
Specimen
3026 others answered this question

MC Question 1

Which of the following items should be capitalised within the initial carrying amount of an item of plant?

(i)

Cost of transporting the plant to the factory

(ii)

Cost of installing a new power supply required to operate the plant

(iii)

A deduction to reflect the estimated realisable value

(iv)

Cost of a three-year maintenance agreement

(v)

Cost of a three-week training course for staff to operate the plant

A     (i) and (ii) only
B     (i), (ii) and (iii)
C     (ii), (iii) and (iv)
D     (i), (iv) and (v)

Reveal answer