Directions : Read the following sentences. Write the letter “T” if the statement is True and “F” if the statement is False. Write your answer on the space before the number. You may view this test at...

Directions
: Read the following sentences. Write the letter
“T”
if the statement is True and
“F”
if the statement is False. Write your answer on the space before the number. You may view this test at our google class.

__________4. LCNRV should always be equal to net realizable value.

__________5. Lower of cost and net realizable value gives the lowest valuation if applied to individual item of inventory.

__________6. The amount of any writedown of inventory to net realizable value and all losses of inventory should be recognized as operating expense in the period the writedown or loss occurs.

__________7. Professional fee arising directly from the acquisition of property and equipment are recognized as expense immediately.

__________8. Exchange has a commercial substance when the exchange result in the difference in future cash flows.

__________9. The cost of abnormal amounts of wasted materials is not included in the cost of self-constructed assets.

__________10. An asset is not depreciated even if the fair value exceeds carrying amount.