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Forming a corporation is more costly than starting a sole proprietorship. The cost may include, for example, attorneys fees, inc
Forming a corporation is more costly than starting a sole proprietorship. The cost may include, for example, attorneys fees, inc
admin
2012-01-26
32
问题
Forming a corporation is more costly than starting a sole proprietorship. The cost may include, for example, attorneys fees, incorporation fees paid to the state, and other outlays necessary to bring the corporation into existence. These costs are charged to an asset account entitled organization costs. In the balance sheet, organization costs appear under the other assets caption. Conceptually, organization costs are an intangible asset that will benefit the corporation over its entire life. But as a practical matter, most corporations amortize this asset to expense over a period of only 5 years, as allowed under income tax regulations. Because the amortization of organization costs usually is immaterial in dollar amount, this convenient treatment is justified by the accounting principle of materiality.
Organization costs is listed in income statement.
选项
A、Right
B、Wrong
C、Doesn’t say
答案
B
解析
段落中第四句话In the balance sheet, organization costs appear under the other assets caption.可以推导出公司筹备费列于资产负债表中而非收入表中。
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本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
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FECT综合(现代金融业务)
金融英语(FECT)
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