Assume You Want to Place an Ad in XYZ Magazine

question 101

Multiple Choice

Assume you want to place an ad in XYZ Magazine, which has a circulation of 4.6 million, and the price for a four-color page is $223,410, then its CPM would be:

• A)$49.26.
• B)$47.85.
• C)$45.78.
• D)$48.57.
• E)$46.25.

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Definitions:

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.

Historical Cost Principle

An accounting principle that assets should be recorded and reported at their original purchase cost.

Going-Concern Assumption

An accounting principle assuming that a company will continue to operate indefinitely and not go bankrupt, impacting financial decisions and reporting.

Full Disclosure

The principle that requires a company to provide all necessary information in its financial statements to ensure they are complete and accurate.