Chapter 1, Problem 8Q

What is the role of financial intermediaries in asset transformation? Briefly explain along with the types of asset transformation undertaken by the financial intermediaries.

Intangible Assets Product development costs represent a considerable expenditure for companies. They are either written off as expense or capitalized as assets. Required: a. Discuss the conceptual issues and the definition of an asset that may be applied in determining whether development expenditure should be treated as an expense or an asset.

How does the Conceptual Framework define an asset?   Select one alternative A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity

When it comes to accounting for investment property, which of the two models may an organization choose from?

Define the term elements associated with investment activities?

The means by which individuals hold their claims on real assets in a well-developed economy are A) Investment assets. B) Depository assets.C) Derivative assets.D) Financial assets.E) Exchange-driven assets. also give justification for the chosen answer.

How should research and development expenditure be dealt with in an entity's financial statements?   a-  Research expenditure should always be written off as an expense but development expenditure should always be capitalised as an intangible asset b- Research and development expenditure should always be written off as an expense c- Research expenditure should always be written off as an expense but development expenditure should be capitalized as an intangible asset if it satisfies certain conditions d- Research and development expenditure should always be capitalised as an intangible asset

Which of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?

Matching Type   Equity. Intangible assets. Property, plant, and equipment Assets Resources of a durable nature used in nature         Economic rights or competitive advantages          Resources expected to provide future economic benefits         Residual interest in the net assets of an entity