Identify the three essential characteristics of an asset and explain how deferred tax assets meet these characteristics.
What will be an ideal response?
(1) An asset must have probable future benefits that contribute to a company's future net cash inflows, (2) the company must be able to obtain access to these benefits, and (3) the transaction or event resulting in the company's right to these benefits must already have occurred.Deferred tax assets meet the first characteristic because the deductible amounts in future years will reduce the cash outflow for taxes. The second characteristic is met because the company has exclusive rights to the reduced taxes paid. And, the third characteristic is met because past events created the deductible temporary differences that resulted in the deferred tax asset.
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Which of the following costs should always be expensed as incurred?
A) the costs of externally acquired identifiable intangible assets B) the costs incurred directly associated with establishing and successfully defending the rights associated with internally developed identifiable intangible assets C) the costs of internally developed unidentifiable intangible assets D) the costs of externally acquired unidentifiable intangible assets
List two organizational benefits of having many high-quality leader–member exchanges.
What will be an ideal response?
Select the incorrect statement regarding the relationship between type of user and type of information.
A. Assembly line supervisors need more immediate feedback on performance than do senior executives. B. Senior executives need less aggregated information than do lower-level managers. C. Middle managers need more nonfinancial, or operational data than do senior executives. D. Senior executives use general economic information as well as financial information.
In a job shop, ________ are used to identify incoming materials and purchases that may be behind schedule.
What will be an ideal response?