Answer:
Decreased
Explanation:
Liquidity or current ratio = Current Assets / Current liabilities
If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.
The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.
Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).
Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.
Answer:
The correct answer is (d)Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.
Explanation:
Research and development costs must be recognized as an expense within the accounting period in which they are presented, since regardless of whether or not a patent was obtained, the organization incurred costs represented in the research and development process that was executed. When this process generates a patent, it is necessary to recognize said right in an asset, but at no time will it be equal to the expenses incurred in the investigation process, since the company hopes to commercialize that knowledge for its own benefit.
Answer:
Depreciation expense 2019= $17,062.5
Explanation:
Giving the following information:
Purchase price= 102,000
Useful life= 8
Salvage value= 11,000
To calculate the depreciation expense under the double-declining balance, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2018= 2*[(102,000 - 11,000)/8]= $22,750
2019= 2*[(91,000 - 22,750)/8]= $17,062.5
The answer is 562.754405
The total amount she will have to pay back in four years is. 562.754405