201 FS 7 Asset and Liability Recognition--Key

201 FS 7 Asset and Liability Recognition--Key - 201 Asset...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
201 Asset and Liability Recognition 1. Central Corporation has developed brand name recognition for its products. Management expects this brand name recognition to provide benefits to the firm in its future business activities. The corporation made various expenditures, primarily for advertising and marketing to build the recognition. Should the corporation recognize an asset in its financial statements? If so, what is the value of the asset? a. no, the future benefits cannot be reliably measured b. no, the cost of the asset cannot be reliably measured c. yes, for the amount of expected future benefits which can be reasonably estimated d. yes, for the amount of expenditures already made e. none of the above 2. A firm acquires shares of common stock in Garco, Inc for $640,000. The firm holds these shares with the expectation of developing long-term relations with Garco. Does this transaction give rise to a non-cash asset? If so, what is the account title and value? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

201 FS 7 Asset and Liability Recognition--Key - 201 Asset...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online