QUESTION 6

PepsiCo recognizes liabilities for contingencies when the amount of payment is reasonably possible and estimable.

True

False

0.5 points

QUESTION 7

PepsiCo is organized into how many reportable segments?

	A.	ten
	B.	seven
	C.	six
	D.	five

0.5 points

QUESTION 8

PepsiCos long-term contractual purchase commitments for orange juice in connection with its Tropicana business are recorded as liabilities on the balance sheet.

True

False

0.5 points

QUESTION 9

Brand development costs are

	A.	capitalized and amortized over periods which generally range from 5 to 40 years.
	B.	expensed as incurred.
	C.	recorded as an intangible asset with an indefinite life and no amortization.
	D.	amortized over expected useful lives of successful products.

0.5 points

QUESTION 10

An example of a non-operating expense for PepsiCo, Inc. is

	A.	shipping and handling cost.
	B.	research and development cost.
	C.	interest expense.
	D.	an impairment charge.