Answer:
c. Return on Assets
Explanation:
The net income usually has an impact of interest expense since interest expense is deducted from earnings before interest and tax in arriving at net income.
Hence, in order to take out the impact interest expense when computing return on assets, an adjusted net income known as de-levered net income is computed using the below formula:
Net Income + (1-t)xInterestExpense
Answer:
$3,750
Explanation:
Cost of patent $45,000
Useful Life 12
Amortization Expense for 2nd year =$3,750 (45,000/12)
Amortization Expense-Patent Dr.$3,750
Accumulated Amortization-Patent Cr.$3,750
Answer:
True.
Explanation:
Inflation is an economic term that can be defined as the increase in the prices of a product on the market in a given period.
It can occur due to several factors, when there is an imbalance between supply and demand, then it is correct to say that when the demand for a product is greater than the supply, there will be an increase in prices and, consequently, inflation.
It can also occur when there are situations of monopoly, which is the pricing of a product controlled by a company.
Another factor that causes inflation is the increase in a company's production costs, which can be caused by factors such as scarcity, or economic crisis.
Uncontrolled inflation has a negative impact on the consumer's life, which starts to lose its purchasing capacity and has its quality of life reduced.
Answer: price-discriminating firms charge more price from the group that has less price elasticity of demand than the group that has more elastic demand
Explanation:
Means, the group that does not decrease their demand as the price goes up. Price discriminating firms charge more price from such groups. Let me explain more that what price discriminating firms are.
These are the firms that charge different prices for similar and identical good from different groups.
Answer:
b. $722000.
Explanation:
Total amount to be classified and expended as research and development in 2021
Particulars Amount
Laboratory research aimed at discovery of $300,000
new knowledge
Cost of testing prototype and design $62,000
modification
Construction of research facilities having $360,000
an estimated useful life
Total $722,000