Organization costs of $15,000 would be treated as follows:
a. Organization Costs is debited for $15,000 and reported under Other Expenses on the Income Statement.
b. Each year Amortization Expense is debited for $3,000 and Organization Costs is credited for $3,000.
c. Each year, Organization Costs is debited for $3,000 and Accounts Payable is credited for $3,000.
d. Each year Amortization Expense is debited for $5,000 and Organization Costs is credited for $5,000.
e. Organization costs are divided equally among the incorporators.
a
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Concerning the covering of exchange market risks, assuming that a depreciation of the domestic currency is anticipated, one can say that there is an incentive for
a. exporters to rush to cover their future needs. b. importers to rush to cover their future needs. c. both exporters and importers to rush to cover their future needs. d. neither exporters nor importers to rush to cover their future needs.
Suppose that a Swiss watch that costs 400 francs in Switzerland costs $200 in the United States. The exchange rate between the franc and the dollar is
a. 2 francs per dollar. b. 1 franc per dollar. c. $2 per franc. d. $3 per franc.
Which accounting convention could cause an overload of information for the financial statement user?
a. Consistency b. Conservatism c. Full disclosure d. Materiality
An ad using a jogger who is running along a path suddenly imaging seeing friends and "fans" cheering is using which message execution style:
a. Slice-of-life b. Lifestyle c. Fantasy d. Mood e. Testimonial