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QUESTION 3 1 points Save Answer In 2017, Amazon incurred over $4 billion in bonuses and deferred compensation for its management and employees. Some of
QUESTION 3 1 points Save Answer In 2017, Amazon incurred over $4 billion in bonuses and deferred compensation for its management and employees. Some of those costs were included in the product costs (the expenses that represent the cost of the goods that were sold by Amazon) and some of those costs were included in the general overhead expenses for the firm (costs that can't be allocated to a particular product or service). The process of dividing up those expenses and apportioning them within the company is referred to as Allocation. Depreciation. Revenue enhancement. Discretionary documentation. QUESTION 4 1 points Save Answer Which one of the following statements is most accurate? The purchase of a new computer system for a business would typically be considered to be a capital expenditure rather than an operating expensebecause it would be used over a multi-year period of time. If Amazon purchased a fleet of delivery vans to deliver products to customers in the local community, that would normally be considered an operating expenserather than acapital expenditure. Capitalexpenditures directly reduce the amount of profit shown on the income statement, while operating expenses only appear in the cash flow statement. If a company is able to treat capitalexpenditures as operating expenses for accounting purposes, it makes their profits look higher and thereby increases the value of the firm. QUESTION 5 1 points Save Answer Acquisitions of one firm by another firm often create an item in the accounting statement known as goodwill. The accounting term goodwill refers to The increase in the value of the acquiring firm's average share price following the announcement of the merger, which reflects the "goodwill" of the current owners of the firm towards the acquired firm. The difference between the market value of the net assets acquired (minus any liabilities owed for those assets) and the actual price paid for those net assets. The gross amount of net profit expected to result as a condition of the takeover. The acquisition of one firm by the other firm under amicable conditions, where the owners of the purchased firm agree to be acquired without a fight
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