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dezoksy [38]
3 years ago
5

Capitalizing costs that should be expensed: a. is a practice mostly found in large, well-established companies. b. is a healthy

practice if they written off shortly after the transaction takes place. c. usually has no effect on net income. d. has the effect of increasing net income by the same amount of the capitalized costs.
Business
1 answer:
EleoNora [17]3 years ago
8 0

Answer:

Option D. Has the effect of increasing net income by the same amount of the capitalized costs.

Explanation:

The reason is that the capitalized costs are the invesments in any assets whose useful life is more than one year and must be depreciated over useful life of the assets. If a expense nature cost is capitalized which must not be capitalized according to IAS 16 Porperty, Plant & Equipment then the expenses are understated which means that the profits are overstated. This means that presenting expenses as assets will increase the profits as costs will be fewer in amount presented in the financial statements.

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Innovation activities are often aimed at making a discovery or commercializing a technology ahead of competition. What are some
Ira Lisetskai [31]

Answer:

lack of consumer safety

Explanation:

One of the biggest unethical practices that occur during the innovation process is lack of consumer safety. The entire idea of the innovation process is to try and create something truly functional that has not been done before and release it way before any competitor can create a similar product. In this rush to create the product, producers completely ignore many obvious faults that the product may have and/or any dangers it may pose to the consumer as long as the product works as intended.

7 0
3 years ago
Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z dies after 15 years of receiving
insens350 [35]

Answer: Nothing

Explanation:

From the question, we are informed that Z chooses a life income with 10 year period certain settlement option for the annuity Z owns and that Z dies after 15 years of receiving income benefit payments. Based on the above situation, Z's beneficiary receive will receive nothing.

This is because Z has already gotten the income benefits payment since it's for a 10 year period

3 0
3 years ago
Norred Corporation has provided the following information: Cost per Unit Cost per Period $ 121,500 $ 44,500 Direct materials Dir
svetoff [14.1K]

Answer:

$134,300

Explanation:

The computation of total manufacturing  overhead is shown below:-

Variable manufacturing overhead = Variable manufacturing overhead cost per unit × Units produced

= $1.60 × 8,000

= $12,800

Total Manufacturing overhead = Variable manufacturing overhead + Fixed manufacturing overhead

= $12,800 + $121,500

= $134,300

So, for computing the total manufacturing overhead we simply applied the above formula.

5 0
3 years ago
A business formation is also known as:
Iteru [2.4K]

Business formation is also known as: a business attraction

5 0
3 years ago
Read 2 more answers
If an investor has a choice of investing money at 6% compounded daily or 6.025% compounded quarterly which one is best
Keith_Richards [23]

General Rule: Daily compounding gives a higher yield

Compounding works like this:

6.025% per quarter

Quarter 1: $100 x 6.025% = $6.025

Quarter 2: $106.025 x 6.025% = $6.388

Quarter 3: $112.413 x 6.025% = $6.7729

Quarter 4: $119.186 x 6.025% = $7.4491

Etc…

6% per day

Day 1: $100 x 6% = $6

Day 2: $106 x 6% = $6.36

...

Day 365: $193.47 x 6% = $11.96

6 0
3 years ago
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