The purpose of accounting for depreciation is to allocate the cost of a tangible or physical asset over its useful life.
<h3>What is depreciation?</h3>
It should be noted that depreciation simply means the wear and tear of a product based in usage. <em>Depreciation</em> shows how much of an asset has been used.
The scope of generally accepted accounting principles aims to improve the clarity and consistency if the communication of financial information. The five principles include:
Revenue recognition.
Cost principle.
Matching principle.
Objectivity principle.
Full disclosure.
The president’s proposal is within the scope of generally accepted accounting principles. It should be noted that depreciation doesn't guarantee funds.
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<span>Choice (A) is the correct answer. When an economy is expanding, the country will be able to purchase more products from foreign businesses, while also being able to produce more products. This will, in turn, cause the trade deficit to rise while still keeping productivity at the required high level.</span>
The change in accounting estimates such as the life and residual value of a depreciable asset should be applied prospectively. During years 1 & 2, the depreciation is $4,000. However, at the end of year 2, the life of the asset was changed to 6 years and residual value is reduced to $1,200.
Thus, the depreciation starting year 3 is $2,450 computed as:
Cost of asset $19,000
Less: Depreciation (2 years) 8,000
Book Value $11,000
Divide by remaining life 4 years
Depreciation $2,750
Answer:
$218,200
Explanation:
The computation of amount charged to income (expense and loss) is shown below:-
Total cost of the patent = $200,000 + $66,000
= $266,000
Amortization expense for 3 years = $266,000 ÷ 10 × 3
= $79,800
Net Patent cost = Total cost of the patent - Amortization expense
= $266,000 - $79,800
= $186,200
The amount charged to income (expense and loss) in 2024 related to the patent = Net Patent cost + Legal fees
= $186,200 + $32,000
= $218,200
Answer:
The correct answer is letter "B": Office politics.
Explanation:
Internal source risks are those threats that appear unexpectedly from within the organization as a result of the company's regular operations. These risks represent human and technological factors such as policy changes in regards to minimal production hours to obtain certain company's benefits or failure in one of the main manufacturing machines because of lack of maintenance.
