A Driver Started a Business on 1st of January 2014,hiring

question 18

Multiple Choice

A driver started a business on 1st of January 2014,hiring out his limousine for special occasions.Current regulations require the business to purchase a license that will expire after two years.The cost of the license is $12,000.Calculate the amount of license expense to be included in the income statement for the 6 months ended 30 June 2014.

• A) $6,000.
• B) $4,000.
• C) $3,000.
• D) $12,000.

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Definitions:

Food Reserves

Nutrients stored by organisms to be used when external food sources are scarce.

Seed Dispersal

The mechanism by which seeds are spread from their parent plant to new locations, aiding in species spread and diversity.

Indigestible Seed Coats

The outer layers of seeds that cannot be broken down by the digestive system of certain animals, aiding in the dispersion of seeds.

Drupe

A simple, fleshy fruit in which the inner wall of the fruit is a hard stone (e.g., peach, cherry).