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FSA EXAM 1 PROBLEM 3

Horizontales
Allocation of costs of tangible fixed assets.
Presentation of income statement that provides several intermediate profit measures.
Difference between sales revenue and expenses associated with generating sales.
Difference between net sales and cost of goods sold.
Difference between all revenues and expenses.
Proportionate recognition of investee’s net income for investments in voting stock of other companies.
Verticales
Rental agreement, which is in substance, a purchase.
Allocation of costs of acquiring and developing natural resources.
Allocation of costs of intangible assets.
Presentation of income statement that groups all revenue items, then deducts all expenses, to arrive at net income.
Recognition of income from investments in voting stock of their companies to the extent of cash dividend received.
Conventional rental agreement with no ownership rights transferring to the lessee at the termination of the contract.