Which of the Following Best Expresses the Formula for Determining

question 11

Multiple Choice

Which of the following best expresses the formula for determining the price of a U.S.Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?

• A)$100/(1 + i)ⁿ
• B)$100(1 + i)
• C)$100/(1 + i)
• D)1 + $100/(1 + i)ⁿ

Recognize the theoretical accounting principles underlying the capitalization and expensing decisions.

Apply accounting rules to determine the capitalization of costs related to software development and patents.

Evaluate the financial reporting impact of capitalizing vs. expensing costs on net income and asset valuation.

Determine the appropriate accounting treatment for acquired company intangibles and R&D expenditures.

---

Definitions:

Assets

Assets belonging to a company or person, anticipated to yield benefits in the future.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Worksheet

A paper or digital document used to organize data and perform calculations, often preliminary to the preparation of financial statements.

Ledger

A group of accounts that records data from business transactions.