A company incurred and capitalized €2 million of development costs during the year.Th

osts were incurred:

Fixed production overhead: $500,000

Direct material and direct labor: 300,000

Storage costs incurred during production: 25,000

Abnormal waste costs: 30,000

If the company operated at full capacity during the year, the total capitalized inventory cost is closest to:

A.$800,000.

B.$825,000.

C.$855,000.

A.A.

B.B. against,under

C.C. for,on

D.D. of,on

E.E. of,for

in the process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for the costs incurred in the project is to:

A.expense all cost as incurred.

B.capitalize costs directly related to the development.

C.expense costs until technical feasibility has been established.

process of developing a more efficient production process for one of its primary products.The most appropriate accounting treatment for those costs incurred in the project is to:

A.expense them as incurred.

B.capitalize costs directly related to the development.

C.expense costs until technical feasibility has been established.

anies have incurred expenses of approximately $250 million in the current year to expand their production facilities. Company A is highly leveraged. Company B does not have any outstanding debt and paid the $250 million from internal cash reserves. The most likely effect of the difference in the capital structures of the two companies will be:

A. Company A will report higher asset balances related to the facilities under construction.

B. The companies will report the same asset balances related to the facilities under construction.

C. Company A’s interest coverage ratio will be lower than it would have been if the company had expensed all interest.

A．Events that change a company’s financial statements are recorded in the periods in which the events occur．

B．Revenue is recognized in the period in which it is incurreD

C．This basis is in according with GAAP．

D．Revenue is recorded only when cash is received,and the expense is recorded only when cash is pai

D．

xpenses incurred by him during joining/repatriation per tenure，plus actual visa fees，airport tax and hotel accommodation (if any，out of your own country of residence)，transit ports/towns/waiting time included.

A.pay the expense to

B.recover the expense from

C.set off the expense with

D.reclaim the expense from

capitalized €2 million of development costs during the year. These costs were fully deductible immediately for tax purposes, but the company is depreciating them over two years for financial reporting purposes. The company has a long history of profitability which is expected to continue. Which is the most appropriate way for an analyst to incorporate the differential tax treatment in his analysis？ He should include it in:

A. liabilities when calculating the company’s current ratio.

B. equity when calculating the company’s return on equity ratio.

C. liabilities when calculating the company’s debt-to-equity ratio.

A company recently purchased a warehouse property and related equipment (shelving, forklifts, etc.) for €50 million, which were valued by an appraiser as follows: Land €10 million, building €35 million, and equipment €5 million. The company incurred the following additional costs in getting the warehouse ready to use:

€2.0 million for repairs to the building’s roof and windows

€0.5 million to modify the interior layout to meet their needs (moving walls and doors, inserting and removing partitions, etc.)

€0.1 million on an orientation and training session for employees to familiarize them with the facility

The cost to be capitalized to the building account (in millions) for accounting purposes is closest to:

A. €37.0.

B. €37.5.

C. €38.5.

es have incurred expenses of approximately $250 million in the current year to expand their production facilities.Company A is highly leveraged.Company B does not have any outstanding debt and paid the $250 million from internal cash reserves.The most likely effect of the difference in the capital structures of the two companies will be:

A.Company A will report higher asset balances related to the facilities under construction.

B.The companies will report the same asset balances related to the facilities under construction.

C.Company A’s interest coverage ratio will be lower than it would have been if the company had expensed all interest.