Facebook Acquired Instagram for $1 Billion in 2012

question 43

Multiple Choice

Facebook acquired Instagram for $1 billion in 2012.Which one of the following statements does not portray Instagram?

• A)Social-media savvy companies were hesitant to embrace Instagram.
• B)Food categories are helping drive Instagram's popularity.
• C)About two-thirds of Instagram users use the app to learn about brands.
• D)Using photo images and videos can show the "behind the scenes" processes.
• E)Instagram has 600 million users who upload about 100 million photos each day.

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Definitions:

Financing Lease

A lease in which the lessee effectively acquires ownership of the leased asset. Also called a capital lease. Accounted for by showing the leased asset on the balance sheet offset by a liability representing the obligation to make future lease payments. Compare with Operating lease.

Balance Sheet

An accounting report displaying the financial condition of a business, including what it owns, owes, and the equity held by shareholders on a given date.

Leases

A contractual arrangement where a lessee (user) pays the lessor (owner) for the use of an asset for a specified period of time.

FASB

Financial Accounting Standards Board. The body within the accounting profession that sets rules and standards for the form and content of financial statements.