BPP Kit – Section A& B Questions- 1-46

Hi Sir,
BPP Kit – Section A & B Questions:

7. Why the option D is correct?
Why “the receivable sold to a finance company (the Finance company has full resources to the company for any losses) should be recognised as an asset”?
Since the receivable already sold, why can the keep it as an asset?

15. The answer says “Concept of Physical Capital Mantainence is applied in Cost Accounting. So what’s the “Physical Capital Maintenance”? & What’s the “Finance Capital Maintenance”?

36. In this question, it clearly says “Brand at cost of 30 million”. So it seems Brand is asset (with value). However, in the lecture video, you mention Brand Name cannot be an asset because we cannot measure it reliably (i.e. we cannot measure Adidas’ brand). Besides, on tuition note p.28, it also says Brand cannot be capitalised as it’s internal generated. Are there some conflicts?

*Is Brand belong to Intangible Assets or not? How come the question can say “Brand at cost of 30 million” if it’s not intangible Assets as you mentioned in the videos?

*Are customer list and goodwill Intangible Assets?

38. Why impairment not charged to current Asset?

46. Option C” The carrying amount of an entity’s new assets is lower than the entity’s number of shares in issue multiplied by its share price.=> I think this option “not an indicator of impairment as the asset is lower. We impair when the CV is “higher” than the Recoverable Amount. Why cannot we choose option C as the Question asking “Not an indicator of impairment”?

Thank you very much for your help.