When Raphael Corp. incorrectly mentioned an expense of equipment addition instead of capitalizing the effect of the same, then in such case, the net income of the company is understated in the financial statements.
<h3>What is net income?</h3>
The income which is left at the end of an organization at the end of a financial period after making all the regulatory and compliant payments and deductions, such as taxes and depreciation, it is known as net income.
Hence, the significance of net income is aforementioned.
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Answer:
The correct answer is letter "A": Expensed in the period incurred.
Explanation:
Research and Development (R&D) costs are spent on the development of new products that could or could not end up being commercially offered. These kinds of costs are usually expensed at the same time they are incurred. According to the U.S. Statement of Financial Accounting Standards, the R&D costs cannot be capitalized.
Answer:
A
Explanation:
TRUE - The operating system converts a basic user request into the set of detailed instructions that the computer hardware requires, thus acting as an intermediary between the application and the hardware.
Answer:
Product liability
Explanation:
Product liability is when manufacturing company is held responsible for the quality of products they release for sale.
So for a product that is defective the company is liable and will bear the cost of product defects.
When defective products cause harm to the consumer, they can sue the company court.
Product liability law is considered as a type of personal injury law.
<u>Solution and Explanation:</u>
The present value of annuity = Annual cash flows/Discount rate
= 205000 divided by 4 percent
=$5125000.00
The future estimation of cash is determined by utilizing a rebate rate. The markdown rate alludes to a financing cost or an accepted pace of profit for different speculations. The littlest markdown rate utilized in these figurings is the hazard free pace of return. U.S. Treasury bonds are commonly viewed as the nearest thing to a hazard-free venture, so their arrival is regularly utilized for this reason.
