Suppose a company spends $100,000 in the current year to research and develop a safety device for motorcycles. By the end of the year, the company estimates that the new safety device has an 80% chance of generating $300,000 in revenues from sales to customers over the next five years. For what amount would Research and Development Expense be reported in the current year?
A. $80,000.
B. $20,000.
C. $100,000.
D. $0.
Answer: C
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Assets for a particular business might include
a. Cash, retained earnings, and accounts payable. b. Cash, common shareholders' equity, and accounts receivable. c. Cash, property, plant, and equipment, and accumulated other comprehensive income. d. Cash, inventories, and goodwill.
Even if a whistleblower wins a legal case against his company and is compensated, the legal process can be damaging because ______.
a. whistleblowers must first submit to arbitration instead of bringing direct legal suit b. it often takes years to complete while the whistleblower is unemployed c. a whistleblower is not allowed to be employed by the company he or she is suing d. that compensation does not take into account the whistleblower’s legal costs
To forestall means to discuss objections as soon as they are raised.
Answer the following statement true (T) or false (F)
How does the purchase of equipment by signing a note affect the accounting equation?
A) assets increase; assets decrease B) assets increase; liabilities decrease C) assets increase; liabilities increase D) assets increase; owner's equity increases