You are pleasantly surprised to discover that a popular actress appears on The Tonight Show wearing your company's jeans. Later, your company's sales increase by $500,000 as a result. When the actress appeared on TV, you would have recorded an asset because the TV appearance was expected to bring future economic benefits to your company.
Answer the following statement true (T) or false (F)
False
This activity is not a transaction because no assets or services were exchanged at the time the actress appeared on television. No asset would be recorded. In addition, recall that an asset is an economic resource presently controlled by the company; has measurable value and is expected to benefit the company by producing cash inflows or reducing cash outflows in the future. This situation does not meet the definition of an asset.
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An asset was purchased for $120,000 on January 1, Year 1 and originally estimated to have a useful life of 10years with a residual value of $10,000 . At the beginning of the third year, it was determined that the remaininguseful life of the asset was only 4 years with a residual value of $2,000 . Calculate the third-year depreciationexpense using the revised amounts and straight-line method
a. $24,000 b. $25,000 c. $11,000 d. $24,500
A company could reasonably expect use of both an intranet and extranet to ________
A) facilitate collaboration with external business partners B) save the company money C) increase traffic to the company's Web site D) replace the use of professional networking sites E) improve internal communications among employees
Which of the following items are reconciling items on the book side of the reconciliation?
A) outstanding checks and correction of book error B) deposit in transit and NSF check C) bank service charge and outstanding checks D) bank service charge and correction of book error
The face value of a bond is $71,000, its stated rate is 7%, and the term of the bond is five years
The bond pays interest semiannually. At the time of issue, the market rate is 8%. Determine the present value of the bonds at issuance. Present value of $1: 4% 5% 6% 7% 8% 5 0.822 0.784 0.747 0.713 0.681 6 0.790 0.746 0.705 0.666 0.630 7 0.760 0.711 0.665 0.623 0.583 8 0.731 0.677 0.627 0.582 0.540 9 0.703 0.645 0.592 0.544 0.500 10 0.676 0.614 0.558 0.508 0.463 Present value of annuity of $1: 4% 5% 6% 7% 8% 5 4.452 4.329 4.212 4.100 3.993 6 5.242 5.076 4.917 4.767 4.623 7 6.002 5.786 5.582 5.389 5.206 8 6.733 6.463 6.210 5.971 5.747 9 7.435 7.108 6.802 6.515 6.247 10 8.111 7.722 7.360 7.024 6.710 A) $50,844 B) $20,156 C) $68,152 D) $71,000