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NEW QUESTION: 1
An entity with total aside t, of US $100,000,000 and profit of US purchases staplers with an estimated life of 10 years for US $1,000. In connection with the purchase, the company debits miscellaneous expense. This scenario is most closely associated with which of the following cone opts or principles?
A. Materiality and the balance between cost and benefit.
B. Reliability and comparability.
C. Relevance and neutrality.
D. Materiality and going concern.
Answer: A
Explanation:
In principle, wasting assets should be capitalized and depreciated. However, the effect on the financial statements of expensing rather than capitalizing and depreciating the staplers is clearly not material given that they cost US $1,000 and the enterprise has total assets of US $1,000. The choice of treatment is not likely to influence the decisions of financial statement users. The balance between benefit and cost is a pervasive constraint, not a qualitative characteristic. The benefits should exceed the cost of information.
Specifically, the cost of producing the information about depreciation expense over 10 years for the staplers probably is higher than the benefits of the information for decision making. Thus, the expedient procedure of expensing the US $1,000 should be followed.
NEW QUESTION: 2
Which of the following are features of the Write-Optimized DSO? (2)
A. They utilize the single Active Data Table
B. They utilize a semantic (business) key for record uniqueness
C. They enable mass data loads
D. They are intended to contain aggregated data
Answer: A,C
NEW QUESTION: 3
Which of the following program loads IOS image into RAM?
A. TFTP
B. Bootstrap
C. NVRAM
D. POST
Answer: B
NEW QUESTION: 4
Refer to the exhibit.
This cobra code extract is expected to create a BD object. Assume that fvTenantMo has been populated with the correct tenant object and all module prerequisites have been met. Which statement is true?
A. The BD name is bd.
B. The code does not work because you also must import module fvTenantMo.
C. The BD name is kept in the dictionary tenant.
D. The BD name is name.
Answer: C