Should be included as an asset in the balance sheet

Assignment Help Accounting Basics

Reference no: EM133359950

Question: The directors are confident that they have a new club design, the driver XCLBR, which will be a best seller. During the year ended 30 June 2023, we will have incurred $50,000 to source new materials for testing in order to manufacture this product. The prototype cost $55,000 to produce. Initial material identified has proven difficult to obtain. Our junior accountant insists that we should recognise these amounts as expenses, but the directors are adamant that the total $105,000 should be included as an asset in the balance sheet as it has the potential to produce economic benefits.

Reference no: EM133359950

Questions Cloud

Research and describe the tax consequences : Zhang has a basis of $15,000 in his experimental formula. Research and describe the tax consequences of this transaction in the form of a tax memo

Describe christianity in the same manner : Gandhi described Hinduism as a search for truth through nonviolent means. Would you describe/define Christianity in the same manner? Why or why not?

Discuss the working of dykstra algonthm : Discuss the working of Dykstra's Algonthm (5) b) Re-draw the diagram in your answer book, and clearly indicate (highlight) the shortest path between Node 7

How can we explain such a difference : At the same time, our net cash flows showed positive results. How can we explain such a difference

Should be included as an asset in the balance sheet : Our junior accountant insists that we should recognise these amounts as expenses, but the directors are adamant that the total $105,000 should be included

Write a java method for the algorithm you have designed : Write a Java method for the algorithm you have designed. Input the ID using the keyboard. While testing/executing the method, you can use between 10-15 sample

Benefits of information governance strategy : Discuss three organisational benefits of an information governance strategy applicable to the insurance company.

What is the companys total liabilities : AC 114 Purdue Global University Total assets of Birch CO. are $345,000 and its liabilities are equal to two-thirds of its total assets. What is the amount

How does fadiman portray these sorts of difficulties : How does Fadiman portray these sorts of difficulties? And finally, how would Farmer likely contextualize this kind of suffering.

User Account

All Pages