1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
umka2103 [35]
3 years ago
5

Franklin designs purchased the patent of a new couch design. the patent had a remaining life of 18 years, so franklin amortized

the cost of the patent over 18 years. however, experts believe that the couch design will only be popular for six years. how will this affect the accuracy of franklin's financial statements?
Business
1 answer:
lys-0071 [83]3 years ago
6 0
<span>If amortisation expenses are spread over 18 years rather than 6 years, amortisation expenses will be lower than they should be. This will cause an increase in net income. In addition, because less of the cost has been expensed, the remaining value of the patent will be too high, thus overstating assets.</span>
You might be interested in
How does Wikipedia work? What is different about this operation from other encyclopedias?
Eddi Din [679]
It is different because people actually have the option of correcting the information or putting false things too.
7 0
4 years ago
Read 2 more answers
Metcalf Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Metcal
tresset_1 [31]

Answer:

the lease asset is $723,943

Explanation:

The computation of the lease asset is shown below;

= (Lease payment - per year maintenance charges) × present value of an annuity due of 1 for six years at 8%

= ($170,000 - $25,000) × 4.99271

= $145,000 × 4.99271

= $723,943

hence, the lease asset is $723,943

The same would be considered

4 0
3 years ago
When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $
elixir [45]

Answer:

c. discretionary income.

Explanation:

There are various incomes which are explained below:-  

a. Net Income: The income which is calculated after considering all expenses is called gross income.

b. Disposable income: The income which is computed after deducting the tax expenses is known as disposable income. It is not meant for basic necessities that means it considered only tax expenses.

c. Discretionary income: The income which is computed after considering the income, government taxes, other business expenses and day to day expenses is called discretionary income.

d. Gross income: The income which is calculated before considering all expenses is called gross income.

e. Earned income after taxes: The income which is earned after deducting the tax expenses is called earned income after taxes.

In the given situation, the most appropriate option is C.

4 0
4 years ago
Lyman’s business has grown to 400 employees with annual revenues of $15 million. He would like to expand further but needs anoth
muminat
There are options available for Lyman :

Either he
- Sell his equity to his investors, ( which mean that he have to give away a percentage of his company)
- Or he can get some Loans

I he should consider Loans, because his annual revenues already way higher than the amount of loans that he need, he could easily paid it off
7 0
3 years ago
Ethnocentric managers believe that their native country, culture, language, and behavior need to be changed. are equal to all ot
Levart [38]

Answer:

are superior to other cultures.

Explanation:

  • Ethnocentrism is the belief that indigenous culture, customs, and way of life are more important than other cultures. Ethnographers believe that their own culture, country, language and all other characteristics are superior to other cultures.
  • so correct answer are superior to other cultures.
3 0
3 years ago
Other questions:
  • Maria wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacat
    7·2 answers
  • Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding D
    7·1 answer
  • Billy Boi Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent yea
    15·1 answer
  • Which of the following is a condition that may cause a fee simple absolute to become a fee simple defeasible...? The owner takes
    14·1 answer
  • During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the f
    8·1 answer
  • Most people recognize Crayola as a brand of crayon, but Crayola also markets paints, chalk, pencils, markers, toys, coloring boo
    9·1 answer
  • The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _
    6·1 answer
  • If the economy experiences an inflationary gap, a contractionary monetary policy will __________ investment and _______ interest
    13·1 answer
  • achining and Assembly are operating departments; the other departments are service departments. Factory Administration is alloca
    10·1 answer
  • The balance in the prepaid rent account before adjustment at the end of the year is $16,212, which represents 6 months' rent pai
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!