It’s C) The geocentric orientation
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Answer:
Balance sheet extract:
Intangible assets:
Copyright 1 $0
Copyright 2 $48,000
Explanation:
The points to note in the question are enumerated as follows:
An internally generated intangible asset cannot be capitalized.By capitalization ,I mean its costs is treated as intangible asset to be amortized over its useful life.As a result,the $16,000 incurred on the internally generated intangible asset,specifically,the first copyright should be treated as expense when incurred.
However,the second copyright that was bought from University Press can be treated as asset but cannot be amortized since it has indefinite life,but would be tested for impairment on a yearly basis,with impairment losses charged to profit or loss account.
Answer:
a. 116.9 and the inflation rate was 16.9%
Explanation:
<u>Definition</u>
Consumer Price Index (CPI) is a statistical measure that is constructed using a weighted average market basket of consumer goods and services produced by a household.
CPI = (Cost of market basket ₓ / Cost of market basket ₓ₁) * 100
where x = present year(2014) and x1 = base year(2012)
CPI = (90/77) * 100
CPI = 116.88
CPI = 116.9 (to 1 decimal place)
Inflation =<u>Current year basket cost - Base year basket cost</u> * 100
Base year basket cost
Inflation = <u>90-77</u> * 100
77
Inflation = 16.88
Inflation = 16.9% ( to 1 decimal place)
Answer:
A) The GAAP statement is based on cost function rather than cost behavior.
Explanation:
Income statements that follow GAAP rules categorizes expenses based on their business function: product, selling or administrative.
While cost behavior categorizes costs based on how they influence a company's activities: variable, fixed and mixed. When a manager wants to measure the impact of any decision he/she makes, they need to use this type of categorization. For example, if fixed costs increase, what is the new break even point? If variable costs decrease, how is the marginal cost affected?
