Faith Manufacturing Inc began business five years ago producing “Kneepal”, a new type of medical equipment. In 2020 the company hired special staff to develop special equipment at a cost of $170,000 that would increase their production. The cost of the equipment is: a. Treated as a business expense b. Exempt from disclosure in the financial report c. A capitalized cost d. Is not depreciated Certified Public Accountants (CPA) have imposed a rigorous code of conduct on themselves. A CPA engaged in the practice of public accounting can be a stockholder/shareholder of the company he is auditing. Select one: True False Dr. Newel uses the straight-line method of depreciation for his “defibrillator” to conduct test for impairment. He is using the right procedure. Select one: True False
Faith Manufacturing Inc began business five years ago producing “Kneepal”, a new type of medical equipment. In 2020 the company hired special staff to develop special equipment at a cost of $170,000 that would increase their production. The cost of the equipment is:
Treated as a business expense
Exempt from disclosure in the financial report
A capitalized cost
Is not
Certified Public Accountants (CPA) have imposed a rigorous code of conduct on themselves. A CPA engaged in the practice of public accounting can be a stockholder/shareholder of the company he is auditing.
Dr. Newel uses the straight-line method of depreciation for his “defibrillator” to conduct test for impairment. He is using the right procedure.
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