QUESTION 2 Company A developed a patent for tiger food internally while Company B externally purchased a patent for a different recipe from another party Both companies will sell their patented tiger food on the open market to consumers. Which of the following is true? O Company A can capitalize the cost of its patent but Company B cannot Neither Company A nor Company B are permitted to capitalize the cost of the patents Both Company A and Company B are permitted to capitalize the cost of the patents O Company B can capitalize the cost of its patent, but Company A cannot QUESTION 3 Using the Gross Margin method find the ending inventory value when not purchases were $80.000. sales were $120.000 beginning inventory was $20.000 and the gross margin percentage is 40% O $20.000 O $28.000 O $100.000 O $72.000 QUESTION 4 Recording the expiration (using up) of a prepaid asset would require a O Debit to an Expense O Debit to the Prepaid Asset O Credit to Accounts Payable O Credit to Cash QUESTION 6 In the computation of the Price Earnings Ratio, which of the following is not needed? O Market price per share O Dividends paid to common shareholders Earnings per share O All of the above are needed to compute the Price Earnings Ratio