Answered: accounting treatment for a corporate…

Business

Accounting

accounting treatment for a corporate organization cost

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: _____is that business activity which is concerned with the acquisition and conversion of capital…

A: Business activity is a term used for any activity which is related to making or earning profit and…

Q: What items are included in the company's operating income?

A: The performance of the company will be evaluated using the operating income of the company.…

Q: Explain what is the capital structure of a company.

A: Company raise money by different means to finance growth and operations of company.Combinations of…

Q: How do I determine the amount of capital a company has?

A: Capital: Capital are funds invested by investors in business. The investors invest in form of…

Q: a. What is meant by a company's cost of capital? b. Why is the company's cost of capital critical…

A: Company needs fund to purchase the assets and for operations. Companies finance with Debt and…

Q: Direct cost incurred in a business combination are A. Capitalized B. Expensed C. Capitalized,…

A: Cost is the total expenditure incurred in an organisation during an accounting year. It includes…

Q: What is a simple capital structure? How is EPS determined for a company with a simple capital…

A: A simple capital structure is a firm that has no outstanding securities that could potentially…

Q: What is total net operating capital? Why is it important formanagers to calculate a company’s…

A: The total net operating capital is nothing but the total of net working capital and operating…

Q: Explain the difference between capital expenditure and revenue expenditure, and how each type of…

A: Capital expenditure is an expense which is made to purchase an asset or to increase the capacity of…

Q: corporate

A: SOLUTION:- Non -Operating Assets -There are certain asset which do not contribute to the day to day…

Q: What is capital structure of a company and explain why it is important?

A: The capital structure of a company and explain why is important will be explained:

Q: EXAMINE THE IMPOTANCE OF WORKING CAPITAL TO A BUSINESS OR COMPANY

A: Working capital is the amount of money that a company needs to run its business on a day-to-day…

Q: What is a company's capital structure and why is it important?

A: Answer: Company consists of assets, liabilities and equity in the financials. Company capital…

Q: Computation of cost of capital is significant part of the financial management to decide the capital…

A: The cost of capital is the minimum rate of return that a company must earn on its investments to…

Q: ( Elements of Financial Statements ) Five interrelated elements that are most directly related to…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Explain why firms must correctly classify expenditures incurred as either capital expenditure or…

A: Capital expenditure is something which has been incurred on something that will provide benefits for…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: st of Oss E

A: Intercompany sales mean that sales are made by one company of the group of companies to the other…

Q: The primary measurement unit used for assessing the value of one's stake in an investment company…

A: Net Asset Value is defined as the value of the assets of entity and minus the liabilities value,…

Q: wo main ways are relevant to compare an entity's capital at the beginning and end of an accounting…

A: The right answer is option b. i & iv

Q: ly how taxation (both corpora

A: Introduction : In simple words, capital structure refers to the composition of different types of…

Q: Critically analyse a company capital structure and the factors that influencesit.

A: Introduction: Capital structure is nothing but the debt and securities that are included in the…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: What does capital structure of a company means?

A: Capital structure of a company is the proportion of various long term sources of finance used to…

Q: ess When assets are distributed to the owners of a corporation, these distributions are terme…

A: When assets are distributed to owners of a corporation, these distributions are termed as: option C;…

Q: Why do some companies use gross book value instead of net book value to measure a division’s…

A: Return on investment (R01): This financial ratio evaluates how efficiently the assets are used in…

Q: Identify if statements are true for the corporate form of organization. Capital is more easily…

A: Answer: False.

Q: While putting the value or price of an entity in financial records the lowest price is recorded not…

A: Accounting is the process of recording financial transactions (which can be measured in terms of…

Q: What are the different types of capital requirements that should be considered while estimating the…

A: Capital means the cash or assets which are used to be run or setup the new business and pay their…

Q: Organization cost when incurred during the organizational stage shall be charged to- a) Organization…

A: Organization costs which are incurred at the organization stage can also be termed as startup costs.…

Q: [S1] Operating performance of an entity is reflected by the level of income earned by the entity…

A: Comprehensive income statement: It shows all the income earned by the business during an accounting…

Q: 25 - Which of the following is the table showing all the revenues of an enterprise in a certain…

A: The financial statements of the business includes income statement, balance sheet and cash flow…

Q: Business income allocations from an S corporation to its shareholders are self- employment income to…

A: The S-corporation is a special type of corporation in which all the income, gains, and losses of the…

Q: [S1] Operating performance of an entity is reflected by the level of income earned by the entity…

A: Comprehensive income statement: It shows all the income earned by the business during an accounting…

Q: All of the following statements are objective of financial reporting, except: О А. Provide…

A: Financial reporting means reporting on financial data that indicates the financial health of an…

Q: Which of the following statements regarding the conceptual framework is incorrect? a. The conceptual…

A: Conceptual framework means the way the accounts is prepared , accounting standard is build and…

Q: [S1] Operating performance of an entity is reflected by the level of income earned by the entity…

A: Comprehensive income statement: It shows all the income earned by the business during an accounting…

Q: What is the capital structure of the company?

A: Here Is The Answer:

Q: What is meant by capital structure, what are the characteristics of it's main components, and how…

A: Meaning of Capital Structure: - It is the most important factor of a company. A company can not run…

Q: Explain what is meant by the 'capital structure' of a company. Using the different theories of…

A: Capital structure refers to the financial mix of a company. It includes the various sources of…

Question

1. What is the accounting treatment for a corporate organization cost?

a. Operating expense

b. Other asset

c. Intangible asset

d. Deduction from share capital

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Concept of corporate organization cost

VIEW

Evaluation of options

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understated
Which of the following measures the portion of a corporations profit allocated to each outstanding share of common stock? A. retained earnings B. EPS C. EBITDA D. NOPAT
Retained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.
Comprehensive income: includes transactions that affect stockholders equity with the exception of those transactions that involve owners. is considered an appropriation of retained earnings. includes all transactions that are under managements control. is the result of all events and transactions reported on the income statement.
Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assets
Organization cost when incurred during the organizational stage shall be charged to- a) Organization Expense b) Retained Earnings c) Share Premium d) Share Capital
While putting the value or price of an entity in financial records the lowest price is recorded not the current price or current market value. This is known as [A] Business Entity Concept [B] Conservatism [C] Expenditure Concept [D] Money Measurment Concept
Assets = Liability+ Capital where 'assets' are resources of the business; 'liabilities' are external claims against these resources; ' capital' is an internal or residual claim against these resources. Discuss the accounting equation considering the statement provided.
Which is NOT a consideration for Cost of Capital?A. Invetsor requirementsB. Size of the CompanyC. All of these are considerationsD. Nature of business
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet? Business entity concept Money measurement concept Cost concept Going concern concept