Usefulness of ‘useful life’

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

  1. How did the change in depreciation affect the tech companies mentioned?

  2. Which of the following does a change in the estimated useful life represent?

  3. Which, if any, of the following statements are true? Statement 1, Changes in accounting estimates are adjusted prospectively, or statement 2, Changes in accounting policies are adjusted retrospectively

  4. How is an acquisition of a footballer recorded in the statement of profit or loss?

  5. Which of the following is also adjusted retrospectively per IAS 8?

  6. Reducing the lives of assets will have what impact on the statement of financial position?

  7. Which of the following items will be amortised?

  8. Which of these statements is true? Statement 1, Impairment on goodwill can never be reversed, or statement 2, Companies are able to decide the useful life of an asset if there is no contractual limit

  9. How does Netflix record production costs?

  10. Which, if any, of the following statements is correct? Statement 1, Under amortisation of an asset could lead to losses on disposal, or statement 2, amortisation has no impact on the operating profits of the business

1 Unit