Part I: Write “true” if the statement is correct or “false” if it is incorrect on the answer sheet. (5 points) 1. When the future revenue producing ability of the inventory is above its original cost the companies should reports their inventory value with LCNV method.
2. Enhancing qualitative characteristics are complementary to the fundamental qualitative characteristics.
3. Building held for sale is reported under the property, plant and equipment section of the Statement of Financial position.
4. A long-lived tangible asset is impaired when a company is not able to recover the asset’s carrying amount either through using it or by selling it.
5. Companies record short term notes at face value less allowance, ignoring the interest implicit in the maturity value.