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FAC1601-26-S2
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A company uses specialised equipment under a contract that allows it to determine how the equipment is used and obtain the benefits from it; which concept is illustrated?
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A company purchased a machine for R500 000. Delivery costs were R25 000, installation costs were R15 000 and staff training costs were R10 000. What is the cost of the machine at initial recognition?
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A bank analyses a company’s financial statements to decide whether to grant a loan; which primary user group does the bank represent according to the Conceptual Framework?
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When two companies apply the same accounting policies, users are better able to compare their financial information.
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A bank analysing a company's financial statements to determine whether to grant a loan is considered a primary user of general-purpose financial reports.
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Which depreciation method results in a decreasing depreciation charge over the useful life of an asset?
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Derecognition occurs when an entity removes an asset or liability from the statement of financial position because it no longer meets the recognition criteria.
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A company purchased inventory with the following costs: purchase price R200 000, transport cost R15 000, import duties R20 000, and carriage on sales costs R10 000. What is the cost of inventory?
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A company leases machinery for its entire useful life and controls how it is used during that period; according to the Conceptual Framework, how should the transaction be accounted for?
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A company receives a trade discount of 10% on goods costing R100 000; the inventory should be recorded at R90 000.
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