Reference no: EM132513973

Problem 1: The Dallas Cowboys, an American football team, generates revenue from sponsorships, merchandising, broadcasting and ticket sales. In 2019, the Cowboys brand was valued at $5 billion, up from $4.8 billion in 2018. Further, the Cowboys generated $365 million in EBITDA. Based on this, the Cowboys should

A. Debit intangible assets by $365 million and credit gain by $365 million

B. Debit intangible assets by $365 million and credit retained earnings by $365 million

C. Debit intangible assets by $200 million and credit common stock by $200 million

D. Debit intangible assets by $200 million and credit gain by $200 million

E. Not make any entry

Problem 2: An accounting liability arises when a firm

A. Signs a new labor union contract which includes a 6% pay raise for its union employees

B. Signs a contract to purchase 100,000 units of inventory from a supplier over the next two years

C. Receives inventory previously ordered but not paid for

D. Is sued by a supplier for a failure to pay for services rendered, valued at $100,000

E. Both A and C

F. Both B and C

G. Both C and D