The Accounting of Sales and Costs of Many New Technology

question 96

Multiple Choice

The accounting of sales and costs of many new technology products has resulted in many ethical and legal controversies. Often, the use life of the new product is difficult to assess and therefore how to allocate sales and costs are debatable. A court decision provides guidelines to address these issues. The court decision is an example of:

• A)UCC codification.
• B)administrative law.
• C)common law.
• D)statutory law.
• E)all of the above

Distinguish between various methods of accounting for investments depending on the level of influence over the investee.

Recognize the impact of changes in fair value on the reporting of available-for-sale and trading securities.

Learn the specific accounting treatments for unrealized gains and losses on securities.

Understand the procedures for consolidating financial statements for a parent company and its subsidiary.

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Definitions:

Matrix

A rectangular array of numbers organized into rows and columns, used in linear algebra.

System of Linear Equations

A set of equations with multiple variables that are linear, where the goal is to find values for the variables that satisfy all equations simultaneously.

Cramer's Rule

A mathematical theorem used to solve systems of linear equations with the same number of equations as unknowns, using determinants.

System of Linear Equations

A group of one or more linear equations that share a common set of variables.