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Answer:
Amount of depreciation expense =$5,250
Explanation:
Under the straight line method the same amount is charged as depreciation expense over the estimated useful life of the asset
Initial depreciation = cost - salvage value /number of years
= (25,000 -5000)/5
= 4000 per year
Accumulated depreciation for 4 years= 4000× 3 = 12,000
Revised depreciation = (25,000 -12,000 - 2500)/2
=$5250 per year
Amount of depreciation expense for year 4 =$5250
The franchisee cost that should be capitalised, will be the total amount incurred to acquire the franchisee , which is $100000, the legal fees of $4000 will also be added to the amount as it has been incurred in assciation with the acquisition thus the total cost which should be capitalised will be $100000+$4000 which comes to a total of $104000.
Answer:
The term used is known as Risk Assessment Procedures
Explanation:
These audit procedures are applications to obtain knowledge about the entity and its environment, including its internal control, our objective is to identify and assess the risks of material misstatement, due to fraud or error, both in the financial statements of the company as in the concrete statements contained in decisions.