The expected return for the asset shown in the following table is 18.75 percent. the standard deviation for the asset's returns is 27.683544.
What is the standard deviation?
Generally, To find the standard deviation of the asset's returns, we need to compute the variance of the returns. We can do this using the formula for the variance of a discrete random variable, which is:
Variance = Σ(x - μ)^2 * P(x)
where x is a possible return, μ is the mean of the returns, and P(x) is the probability of x occurring.
In this case, the mean of the returns is 18.75%, so we can plug that value in for μ. We can then compute the variance as follows:
Variance = (0.10 - 18.75)^2 * 0.25 + (0.20 - 18.75)^2 * 0.50 + (0.25 - 18.75)^2 * 0.25 = 756.5625
To find the standard deviation, we just need to take the square root of the variance. This gives us:
Standard deviation = √756.5625 = 27.683544303797468
So the standard deviation of the asset's returns is approximately 27.683544.
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Whereas acknowledging others means you are interested in their ideas, endorsement means that you agree with themTrue/False?
" Whereas acknowledging others means you are interested in their ideas, endorsement means that you agree with them." This statement is True.
the act of pronouncing which you approve of or assist something or someone: The campaign hasn't received any political endorsements. He was hoping to a comfy brief endorsement of the plan from the president. An endorsement is a form of public guidance or approval. Endorsements are given to politicians and merchandise. in case you provide something an endorsement, you're basically pronouncing "I approve of this person or product." Celebrities provide politicians an endorsement if they think you should vote for them.
A signature is an endorsement. for example, whilst corporation problems a payroll check, it authorizes or endorses the transfer of cash from the business account to the employee. The act of signing the take look at is taken into consideration an endorsement, which serves as proof of the payer's purpose to switch funds to the payee.
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which of the following would be considered fixed costs? multiple select question. facility insurance equipment monthly installment direct labor packaging materials
The options that would be considered to be fixed costs are :
A. facility insuranceB. equipment monthly installmentWhat are fixed costs ?A cost that doesn't rise or fall in response to any actions is said to be fixed. Even if there isn't any business activity, a company must make recurrent payments.
Fixed costs are outlays that don't fluctuate based on revenue (or lack thereof). In other words, they are predetermined costs that the company has agreed to pay and which are unrelated to output levels.
Because fixed costs are not based on volume or operations, they are harder to manage than variable expenses.
The fixed cost given are therefore the insurance paid on the facility as this is a constant amount that does not depend on the business, but the insurance provider. The monthly installment paid on the equipment used will also be fixed.
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which of the following is true of convenience products? question 9 options: consumers tend to buy convenience products after a long-term evaluation of competing products in the market.
Consumers generally tend to purchase convenience products immediately and with minimal effort.is true of convenience products.
Convenience goods are frequently inexpensive, undifferentiated from competing goods, and situated in areas where customers can readily buy them. The products are extensively dispersed, necessitate widespread advertising, and are positioned in practical areas .A consumer good that is frequently purchased and easily accessible is categorized as a convenience good. Due to its accessibility, a convenience good frequently does not necessitate a drawn-out decision-making process. Products that the client may easily, quickly, and regularly purchase are known as convenience goods. Newspapers and soaps are examples of convenience goods, as are everyday foods like pasta or ketchup. Convenience Products: Types, Examples, and Definitions. Staple Items, Impulse Items, Emergency Supplies.
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three of the most common business and professional presentations are sales proposals, staff reports, and progress reports. True or False ?
Three of the most common business and professional presentations are sales proposals, staff reports, and progress reports. its True .
The most common scenario for a presentation is when a speaker stands in front of a group of people and makes an effort to visually and verbally educate them about a particular subject. 13 Things to Include in Your Next Powerpoint Presentation A presentation of that type may be made to persuade the audience of anything, persuade them of something, or in some other way teach them. A powerful presentation could be a very effective way to get your point across. An agenda slide, a call-to-action slide, an objection slide, key takeaways, compelling photos, your logo, and backup slides should all be included. Getting better at presentations will raise your profile and strengthen your personal brand. Presentation abilities are essential for both personal and professional success in the workplace.
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complete the following passage explaining how the average american is affected by monetary policy changes. if the fed raises the interest rate on excess reserves, the marginal cost to banks of loaning money rises . the supply of loanable funds therefore falls , pushing interest rates upward , and banks, correspondingly, raise the interest rates they charge on car loans, mortgages, student loans, credit cards, etc.
The Federal Reserve uses its policy instruments to affect the availability and cost of credit in the economy in order to conduct monetary policy, which in turn affects employment and inflation.
In 1913, the Federal Reserve Act established the Federal Reserve System as the nation's central bank. Its main responsibility is to carry out monetary policy in the country in order to support maximum employment, stable prices, and moderate long-term interest rates in the American economy.
Monetary policy may affect economic activity by changing the incentives for saving and investing. This channel frequently affects consumption, housing investment, and business investment. Reduced interest rates on bank deposits reduce customer incentives to save money.
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Which one of the following is a major disadvantage of a corporation?
A. Limited liability of stockholders
B. Additional taxes
C. Transferable ownership rights
D. Limited life
Additional taxes is one of the major disadvantage of a corporation.
Double taxation is the practice of imposing taxes on the same income, assets, or financial transaction. Economically speaking, double taxation—the taxation of shareholder dividends after the taxation of corporate earnings—can be favorable.
According to the US tax system, corporate income is subject to two taxes: one at the corporate level through the corporation income tax and a second at the individual level through the individual income tax on dividends and capital gains.
Double taxing corporate profits, according to those who oppose the practice, is unfair and inefficient because it treats corporate income differently from other types of income and encourages businesses to finance themselves with debt that can be deducted from taxes and to keep profits rather than distribute them to shareholders.
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a company had collected $3,000 in advance for services to be provided throughout the year. at december 31, an analysis of the unearned services revenue account showed that one-third of the services were earned during the year. the entry to record this adjustment will include which of the following entries:
A $1,000 credit is made to the services revenue, while a $1,000 debit is made to the unearned services revenue.
When an organization pre-paid their insurance, did it record it as prepaid insurance?$1,200. Prepaid insurance is increased and cash is decreased when a corporation pays in advance for it. This exchange of assets is a transaction.
What two categories of income are unearned?Investment-type income, such as taxable interest, regular dividends, and capital gain distributions, is categorized as unearned income. In addition, it covers taxable social security benefits, unemployment benefits, pensions, annuities, debt forgiveness, and distributions of unearned income from trusts.
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Which of the following is not deductible from income from business and profession?
The expense of lobbying is not deducted from commercial and professional revenue.
What are the expenses of lobbying?spending on lobbying Any sum paid or expended by the institution in putting on propaganda or otherwise trying to influence legislation is referred to as a "lobbying expenditure." In a letter to a congress person, a Duke official requests that they abstain from voting on an adjustment that will be presented during the bill's discussion.
Can you write off lobbying costs?Research for, preparation for, planning for, or coordination of any of the aforementioned activities, as well as any other costs paid or spent in accordance with lobbying of political activities, are not deductible. No one person could possible hope to gain access to the government legislatures without the help of lobbying.
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at december 31, 2021, hull-meyers corp. had the following investments that were purchased during 2021, its first year of operations:
Security A Security B 954,000 940,000 145,000 139,200 $1,085,000 $1,093,200
What is the process of buying a firm called?
A corporate transaction known as an acquisition takes place when one company buys and takes control of another company. Mergers and acquisitions (M&A), a professional path in corporate law or finance that focuses on the purchasing, selling, and consolidating of enterprises, are fundamentally comprised of these activities.
The acquisition of a firm is now typically recorded using purchase acquisition accounting on the acquiring company's balance sheet. At fair market value, the assets of the acquired company are recognized as assets of the acquirer. The fair market value of the purchasing firm rises as a result of this accounting procedure.
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record the declaration of a cash dividend of $0.30 per share to all shares outstanding on january 29
When recording the declaration of cash dividend of $0.30 per share, the dividend account will be debited and the retained earnings out of which the dividend has been paid will be credited in the journal entry related to the same amount in this financial transaction.
The journal entry in the format of general journal has been mentioned as below for better reference.
Date General Journal Debit Credit
January 29 Dividends Ac. DR. $0.30
To, Retained Earnings $0.30
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if corporations continue to pollute, then the environment will be damaged beyond repair. the environment will be damaged beyond repair. therefore, corporations will continue to pollute. question 22 options: deductive, valid. deductive, invalid. inductive, weak. inductive, strong.
If corporations continue to pollute, then the environment will be damaged beyond repair. Therefore, corporations will continue to pollute. Inductive; Strong, deductive invalid.
An organization called a corporation is one whose shareholders choose a board members to manage its operations. The corporation, not really the shareholders, is responsible for the operations and economic condition of the organization. Corporations can be either for-profit, like most corporations, or just not, like most nonprofit organizations are.
Since it's not required, corporations are increasingly up in the state where their operations are located. Although it contributes to the bureaucracy, some corporations are established in states like Wilmington or Nevada that are regarded as pro-business. The corporation must then be registered inside the state where you have been conducting business as a foreign entity, and taxes should be payable to that state.
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Which of the following is necessary in a well-functioning market or capitalist economy, but is not necessary for a command economy?
A. Centralized decision making
B. Scarcity of resources
C. Monopolies
D. Protection of property rights and price signals
E. Positive externalities
Protection of property rights and price signals is necessary in a well-functioning market or capitalist economy, but is not necessary for a command economy. So, the correct answer is option D.
The economic system known as capitalism, or the capitalist economy, is one in which private firms control and govern the factors of production such as capital goods, labour, natural resources, and entrepreneurship.
In a capitalist economy, usually referred to as a market economy, the creation of all products and services is based on supply and demand in the market. It differs from the centrally planned economy, commonly referred to as a command economy or a planned economy.
Profit-making is the primary driving force behind a capitalist economy. The existence of open markets and the absence of government involvement in company regulation are other traits of the capitalist economy.
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pop culture clothiers, inc., sells t-shirts to trendwell stores, inc., under an existing contract. when textile costs increase, trendwell agrees to a price increase, but later wants to cancel the contract. trendwell may cancel the contract immediately. cancel the contract only after accepting a final shipment. cancel the contract only on reasonable notice. not cancel the contract.
The brand may revoke the written revision to raise the price if there are any missing considerations.
This can happen if, despite the fact that the price was predetermined by their previous contract, the brand accepts in the written agreement to a price increase requested by trend. If a brand violates one or more of the contract's specified requirements, you may be entitled to terminate the agreement. Contract termination is referred to as a "breach" in the legal community, but in order to do so, you must establish that there was a significant breach. Delicioso is not permitted to cancel the contract because a new contract supersedes the previous one and bears the new price rise. Deliciso will suffer a loss if it decides to cancel the contract since it would be required to pay damages and other penalties for breaking the agreement with Coffee Roasters Inc. Delicioso must complete the contract before renegotiating another one in light of this.
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sole proprietors engaged in a business deduct depletion on schedule c that accompanies form 1040
False. sole proprietors do not engaged in a business deduct depletion on schedule c that accompanies form 1040.
Who are sole proprietors ?
A person who runs an unincorporated business alone is known as a sole proprietor. If you choose to treat a domestic limited liability company (LLC) as a corporation, however, and you are the only member, you are not considered to be a sole owner.
Small companies like a neighborhood grocery store, a neighborhood clothing store, an artist, a freelance writer, an IT consultant, and a freelance graphic designer are examples of sole owners.
A sole proprietorship has many advantages, including little paperwork and inexpensive setup. There is also how simple it is to maintain. It's actually the simplest and least expensive form of business you may start, according to the SBA.
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Schedule C, Profit or Loss from Business, is filed with Form 1040 by sole owners who are operating a business.
Can I deduct business expenses on Schedule C?
To report income and expenses for a business, a taxpayer must file IRS Schedule C, Profit or Loss from Business, along with their primary tax return, Form 1040.
Anyone who is self-employed, a business owner operating alone, or a Limited Liability Company (LLC) with only one member must use Schedule C to disclose any action carried out to generate income or profit. The estimations of profit or loss that ensue are sometimes regarded as self-employment revenue.
Anyone who files an annual tax return and runs a business as a sole proprietor must complete Schedule C. A Limited Liability Company (LLC) with one member is regulated similarly to a sole proprietorship.
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Assessing Financial Statement Effects of Passive and Equity Method Investments
On January 1, 2018 Ball Corporation purchased shares of Leftwich Company common stock.
(a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions. Use the financial statement effects template (with amounts and accounts) to record the following transactions:
(1) Ball purchased 5,000 common shares of Leftwich at $15 cash per share.
(2) Leftwich reported annual net income of $40,000.
(3) Ball received a cash dividend of $1.10 per common share from Leftwich.
(4) Year-end market price of Leftwich common stock is $19 per share.
Use negative signs with answers when appropriate.
The financial statement effects template is given as :
It is a double-entry concept that helps us understand each transaction and its impact on the company's financial statements.
Balance sheet
Transaction cash asset + non-cash = liability + contributed capital + earned capital
1 -75000+ 75000 = 0 +0+0
2 0+ 40000 = 0+0+ 40000
3 5500 +0 = 0+0+ 5500
4 0 +20000 = 0+ 0 + 20000
Income statement
Transaction Revenue - Expense = Net Income
1 0 -0 = 0
2 40000 - 0 = 40000
3 5500 - 0 = 5500
4 20000 +0 = 20000
From the above financial statement effect template, we can understand the company's business decisions clearly.
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according to the keynesian framework, which of the following will not help a country to get out of a recession, but may help that country reduce inflation?
According to the Keynesian framework, the statement that will not help a country to get out of a recession, but may help that country reduce inflation is: B. a decrease in military spending.
What is recession?Recession occur when a nation experience decline or decrease in their economy and this can tend to occur as a result of decline in the gross domestic product of that nation.
A decline in military spending can tend to help reduce inflation which is a rise in the price of goods and service but on the other hand it cannot help a nation to get out of recession.
Therefore the correct option is B.
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The complete question is :
According to the Keynesian framework, which of the following will not help a country to get out of a recession, but may help that country reduce inflation?
A. an increase in military spending
B. a decrease in military spending
C. increase in spending by the government on health care
D. decrease in spending by government on health care
Kailyn obtains an insurance policy that protects her against liability for property damage resulting from the operation of her vehicle. This is
a. disability insurance.
b. automobile insurance.
c. malpractice insurance.
d. liability insurance
What happened to Kailyn was a traffic accident. Kailyn can use her automobile insurance.
Insurance is an agreement between two or more people in which the insured party pays contributions/contributions/premiums to receive compensation for the risk of loss, damage or loss, which may occur as a result of unexpected events.
Insurance cannot eliminate the risk of unexpected events occurring, but insurance can reduce the impact of losses arising from these events, whether on a small or large scale. Now insurance has become part of financial planning for some people for the long term. everyone is expected to have insurance, because by having insurance, any unwanted events can occur, and the impact of these events can be reduced.
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costs to restore land or other property to its original condition after extraction of the natural resources ends
Costs to restore land or other property to its original condition after extraction of the natural resource's ends are called Restoration costs.
What is Restoration costs?
The charges associated with carrying out Restoration Actions are referred to as Restoration Costs. The definition of "Restoration Costs" in this section 4.29 shall apply. Restoration fees are the expenses that the tenant really incurred to fix and restore the tenant improvements and any alterations they made to the premises.
What is ecological restoration?
Ecological restoration is the procedure used to restore natural areas whose biological communities and ecosystems have been damaged or lost. Humans have imported invasive species, changed natural communities to extractive usage, and transformed local native plant and animal populations in many ecosystems.
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A(n) _____corporation is considered closely held with few owners, whereas a(n) ... any investor who wants to purchase shares of stock on the stock exchange.
A(n) Private corporation is considered closely held with few owners, whereas a(n) public corporation is available to any investor who wants to purchase shares of stock on the stock exchange .
A smaller corporation is referred to as ao private crporation if it only has a few shareholders and doesn't make its stock available to the general public. A public corporation, on the other hand, is permitted to sell its stock to the general public.
What distinguishes a private firm from a public corporation?
A private company is typically owned by its founders, management, or a collection of individual investors. A company that has sold all or a portion of itself to the general public through an initial public offering is referred to as a public company.
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a business issued a 60-day note for $60,000 to a bank. the note was discounted at 8%. assume a 360-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. | b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank.
A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 360-day year.
a. Journalize the entry to record the issuance of the note. For a compound transaction,
To record issuing of 60 day, 8% note payable
Discount on notes payable = Amount × Discount Rate × Time / 360 days
= 60,000 × 8% × 60/360
= 800
b. Journalize the entry to record the payment of the note at maturity.
V = P * (1+R)^T
V – Maturity Value
P – Principal Invested
R – Rate of Interest
T – Time of Investment
V = 60,000 (1+ 8%) ^ 360 (day)
=64800.
How much an investment will earn when it reaches "maturity" is determined by its maturity to value. Maturity could occur at any point in time or within a predetermined window set by the investment.
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In the video, the president of Honest Tea uses the term ___________ to describe his idea for what the chapter defines as __________.
In the video, the president of Honest Tea uses the term mission driven business to describe his idea for what the chapter defines as corporate social responsibility.
More businesses are embracing sustainable strategies and adopting more socially responsible practices as consumers and the restrictions of ever-dwindling natural resources compel companies to make more responsible decisions. The practice of businesses pursuing environmental and social benefits in addition to financial benefits is known as corporate social responsibility (CSR). Businesses of all sizes are seeking for ways to integrate sustainable practices into their daily operations as the demand for firms that do good grows.
Increased openness, investments in green technologies, employee and local community engagement, and diversity and inclusion programs are some of the most well-liked CSR trends today.
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which of the following individuals would be allowed survivorship income benefits under social security?
A widow or widower age 60 or older (age 50 or older if they have a disability). A surviving divorced spouse, under certain circumstances. A widow or widower at any age who is caring for the deceased's child who is under age 16 or has a disability and receiving child's benefits.
The state of getting lost one's partner to death is termed widowhood.[1] An archaic time period for a widow is "relict,"[2] actually "a person left over". This phrase can now and again be found on older gravestones. The phrase "widow" comes from an Indo-ecu root that means "widow" and has cognates throughout Indo-eu languages. The male form, "widower", is first attested inside the 14th century, through the 19th century supplanting "widow" close to guys.[3]The phrase "widow" comes from an Indo-ECU root that means "widow" and has cognates throughout Indo-eu languages.
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Regarding real estate investments, risk that is associated with the type of property and its location, design, lease structure, and so on can be thought of as:Multiple ChoiceMarketability riskLiquidity riskBusiness riskInterest rate risk
The risk, when it comes to real estate investments, of the type of property, the lease structure, and the lease design, is called the C. Business risk
What is Business risk ?Business risk is the potential for a firm or organization to have lower earnings or failure. A business risk is anything that compromises a company's capacity to meet its financial objectives.
Business risk is the possibility that internal and external factors could combine to produce a situation where a corporation would no longer be viable.
The corporate environment beyond of management's control, including macroeconomic forces (like inflation, foreign exchange rates, or prevailing interest rates). Dangers unique to a given industry, such as regulatory risk, entry barriers, the potential for disruption, and other elements.
When it comes to real estate investment therefore, business risk would refer to things like property design, location, and lease structure.
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an example of an m-form organization is one in which: group of answer choices o each division performs a single task for the firm o each division performs all the tasks necessary to serve a particular type of customer o each division performs all the tasks necessary to serve all the customers of a particular geographical area o all of the above o both b & c
M-form corporations are multi-divisional organisations where each division is a geographic or product unit in charge of its own operations and profits while the corporate head office sets overarching strategy and oversees the divisions.
What are M-form organisations?A multi-divisional model of organisation divides a company into a number of partially independent groups that are directed and governed by central goals. M-form corporations are multi-divisional organisations where each division is a geographic or product unit in charge of its own operations and profits while the corporate head office sets overarching strategy and oversees the divisions. Functional, multi-divisional, flat, and matrix structures are the four different forms of organisational structures. Although the majority or all of the M-form organization's operations are in the same or closely comparable industries to those of the H-form organisation, it is also known as the divisional design. A related diversification corporate strategy is implemented using the M-form design. In this instance, a mechanical contracting company.
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the goal of this activity is to demonstrate the ability to list the steps of the accounting cyckle in order
Either the question is incomplete or it is a spam question.
But still, the following answer is given considering the question as: the steps involved in the accounting cycle.
There are the following steps involved in the accounting cycle:
Identify the transactions in the day to day business, as such which transaction is of a financial nature which is to be recorded in the financial statements.The next step involves the preparation of journal entries for the recorded transactions. Next steps involves the posting of the recorded transactions in the ledger accounts in order to get a detailed view of the transactions.Now, prepare the trial balance which is unadjusted right now. The trial balance should be matched.With the help of the trial balance and the ledger accounts, prepare the financial statements of the entity. The financial statements include the preparation of trading account, profit or loss account and balance sheet of the entity in order to know the financial position of the concern.6. Now post the closing journal entries at the end of the accounting period.
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If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.
Refer to Scenario. Farmer Brown's total-cost curve is
A. increasing at a constant rate.
B. increasing at an increasing rate.
C. increasing at a decreasing rate.
D. decreasing.
Farmer Brown's total cost curve, given the scenario of the number of plants that he buys and the bushels of wheat, is B. increasing at an increasing rate.
What is the total cost curve ?The cost of creating each level of output is represented by the total cost curve, so if we can discover the inputs that have the lowest cost per unit of output, we can calculate the cost of producing each level of output.
This total cost curve would be considered to be increasing at an increasing rate, if the marginal costs of production are increasing for every additional unit of cost incurred.
For Farmer Brown, the marginal cost at 2 bags of plants is :
= 9 - 5
= 4 bushels
At 1 bag it is :
= 5 - 0
= 5 bushels
At 3 bags it is :
= 12 - 9
= 3 bushels
Because the marginal product is decreasing, the marginal cost is increasing which means that the total cost curve is increasing at an increasing rate.
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which of the following terms identifies the process of reviewing log files for suspicious activity and threshold compliance?
Auditing is the process of reviewing log files for suspicious activity and threshold Compliance.
An audit is an "impartial exam of monetary statistics of any entity, whether income orientated or not, no matter its length or prison shape while such an exam is performed to be able to specific an opinion thereon.” Auditing also tries to make certain that the books of bills are well maintained via the concern as required by using the regulation. Auditors don't forget the propositions earlier than them, gain proof, and evaluate the propositions of their auditing record.
Audits offer a third-celebration warranty to numerous stakeholders that the difficulty remembering is free from cloth misstatement. The term is maximum frequently applied to audits of the economic information relating to a criminal man or woman. different usually audited regions consist of secretarial and compliance, inner controls, first-class management, challenge control, water control, and strength conservation. because of an audit, stakeholders may additionally compare and improve the effectiveness of threat management, management, and governance over the difficulty be counted.
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Which of the following strategies has the shortest delivery lead time and the least customer input?a) Assemble-To-Orderb) Make-To-Orderc) Make-To-Stockd) Configure-To-Order
Assemble to order has the shortest delivery lead time and the least customer input.
What is Assemble to order?
Assemble-to-order (ATO) is a business manufacturing strategy in which customers buy quickly produced things that may include some personalization. The basic parts of the product must typically be manufactured but not assembled. The parts are quickly assembled after receiving an order, and the final product is subsequently sent to the customer.
The assemble-to-order method (ATO) combines the make-to-stock strategy (MTS) with the make-to-order strategy (MTO). When adopting a make-to-stock method, the entire batch of product is prepared in advance. The objective is to build an inventory that matches anticipated or assumed consumer demand. Setting a production target, building up inventory, and attempting to sell as many finished items as you can are the processes in this process.
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g which one of the following is not a way to improve the s/q rating of branded pairs produced at a particular production facility?
Avoiding using ecologically friendly or green goods that are inferior to more expensive ones.
What is S/Q Rating?Consumer Group analyses the quality and styling of each competitor's footwear, giving each brand's goods a styling-quality or S/Q rating from 0 to 10 stars. Invest early in plant renovations, particularly the increase in the S/Q rating. The business will benefit from an early investment in these areas for a number of years. The biggest factor affecting a company's credit rating is the total quantity of debts it has outstanding.
Start with the principles you can be certain of: I propose starting with a S/Q grade of 7 stars and 50 models are available for the high quality, low model strategy.
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T/F a purchased intangible is valued at its original cost. original cost for acquiring a patent would include (select all that apply.)
A purchased intangible is valued at its original cost. The original cost for acquiring a patent would include legal costs to acquire the required filing fees and purchase price.
What expenses are covered by the price of an intangible asset?
An identifiable cost that is difficult to measure or estimate precisely is known as an intangible cost. Impairment of benevolence, a decline in employee morale, or brand damage are examples of common intangible costs.
Non-physical property is referred to as intangible assets. An intangible asset's acquisition cost is not recovered in a single accounting period but rather through amortization over the course of its economic life.
Therefore, A patent's initial cost would include the purchase price and legal fees needed to obtain the necessary filing fees.
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