All categories

2 years ago

How is "Value" assigned to assets

1 answer:

3 0

They use The Economic Analysis Method to assign an monetary value, because it is often difficult to assign a value. This approach ( The Economic Analysis Method) states that, the patents value is the replacement cost, or at least the right amount to replace the protection right on the invention.

I hope this answered your question! :^)

You might be interested in

Stanley, Inc.'s 2018 income statement reported net sales of $6,000,000, uncollectible accounts expense of $160,000, and net inco

Daniel [21]

Answer:

d. Account receivable days = 72 days

Explanation:

The average receivable days. This is the average length of time it takes a business to collect the amount due from its customers in respect of credit sales.

When a business sells on credit , customers are expected to settle their account within a given credit period. Account receivable days is computed to evaluate how well a business is managing its investment in the account receivables.

The shorter the better, as it means that custmers are paying on time, thereby preserving cash position for the business and reducing the risk bad debt.

A prolonged account receivable days means a poor credit control system which comes with the attendants risk bad debt and additional financing costs for the business.

To compute the account receivable days (debtors collection period), use this formula:

Account receivable days= (Average account receivable/Credit sales) × 360 days.

So we apply this to the question:

Account receivable days= ( 1,200,000/6,000,000) × 360 days

= 72 days

5 0

3 years ago

Distinguish between financial and cost accounting.

Whitepunk [10]

Cost accounting compiles the cost of raw materials, work-in-process, and finished goods inventory, while financial accounting incorporates this information into its financial reports (primarily into the balance sheet). ... Financial accounting personnel issue reports only at the end of a reporting period.

4 0

1 year ago

Find the following values for a lump sum assuming annual compounding. a. The future value of $800 invested at 7% for one year b.

Dmitrij [34]

Answer:

For the first 2 we calculate the future value:

(A)856

(B)1,122.04

Explanation:

$Principal * (1+ r)^{time} = Ammount$

$800* (1+ 0.07)^{1} = Ammount$

856

$800* (1+ 0.07)^{5} = Ammount$

1,122.041358

$\frac{856}{(1 + 0.07)^{1} } = 800$

$\frac{1,122.04}{(1 + 0.07)^{5} } = 800$

5 0

2 years ago

Casey transfers property with a tax basis of $3,800 and a fair market value of $6,800 to a corporation in exchange for stock wit

ElenaW [278]

Answer:

$5789

Explanation:

Calculation to determine the amount realized by Casey in the exchange

Fair market value of stock $5250

Add Cash in transaction $ 720

Add Liability which is going to the buyer $ 830

Less Selling expenses ($461)

Amount realized $5789

($5250+$720+$830-$461)

Therefore the amount realized by Casey in the exchange is $5789

7 0

2 years ago

Which technique might a scrummaster use to facilitate communication between the development team and the product owner? bookmark

ratelena [41]

The correct option is D.
The scrum master refers to the facilitator for an agile development team. His major responsibility is to manage the process of information exchange. All the responsibility listed above are the ways by which a scrum master can facilitate communication between the development team and the product owner.<span />

8 0

3 years ago