are patents an expense?

Q: What is fraud?

A: Misstatement risk: It implies to a risk that the financial statements of the company are…

Q: What are agency problems?

A: Owners of the company are shareholders. The number of the shareholders for a corporation will be…

Q: What information is irrelevant? Why is it irrelevant?

A: Irrelevant cost:   Irrelevant cost is that cost which do not affect the decision making process of…

Q: When is nonfinancial information relevant?

A: Non-Financial information: Non- Financial decisions are qualitative in nature and do not include…

Q: What does the disclosure principle require?

A:

Q: Patents are asset, liability, quity, revenue or expense?

A: Assets: These are the resources owned and controlled by business as a result of a past transaction…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: When is independence impaired under PCAOB standards?

A: Independence would be considered to be impaired if a covered member accepts more than a token gift…

Q: How do you determine the market value of a patent?

A: Patent is an intangible asset of the company that is created after putting research and development…

Q: How is a trademark different from a license?

A: Trademark A trademark is the familiar logo or catchphrase that consumers associate with a certain…

Q: When is independence required?

A:

Q: What is the Rights Issue?

A: The Rights issue is the issue of a definite proportion of Shares to the existing shareholders of the…

Q: What is liability

A: Financial accounting includes recording, collecting, summarizing and interpreting the financial data…

Q: What is commercial risk?

A: In financial terms, risk is defined as the possibility that the real profits from an outcome or…

Q: what is a validity check?

A:

Q: What is a patent acquired to protect an original patent.

A: Patent refers to an intangible asset that provides an exclusive right for an invention, which can be…

Q: Is advertising a program expense?

A: Advertising is treated as expense when it is incurred by the entity or organization for making the…

Q: Why is EBITDA controversial?

A: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a metric used to assess…

Q: What is USALI? Is it required under GAAP? Why would you use it?

A: USALI is Uniform System of Accounts for the lodging industry. The USALI states that all financial…

Q: What are fictitious assets?

A: Fictitious assets: Asset formed by an accounting entry (and included under assets in the balance…

Q: What is monopoly?

A: In market, there are various types of market structures, monopoly is one of them.  Monopoly market…

Q: Why does the exclusion of the preemptive right ordinarily inconsequential?

A: Preemptive Rights: It is a contractual clause that gives the shareholders right or allows them to…

Q: 6-31 Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety…

A: Equivalent Units : Under equivalent production, partially completed units are notionally converted…

Q: What is improper accumulation?

A: Improper accumulation is defined as the unjustifiable accumulation behind the business's reasonable…

Q: What is an unasserted claim?

A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…

Q: What is conflict of interest?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…