Explain the reason for the different cases

Reference no: EM131436039

Question: Indicate which of the following items could appear as an asset on the balance sheet of a business. Explain your reasoning in each case:

1 £1,000 owing to the business by a customer who is unable to pay.

2 The purchase of a patent from an inventor that gives the business the right to produce a new product. Production of the new product is expected to increase profits over the period during which the patent is held.

3 The business hiring a new marketing director who is confidently expected to increase profits by over 30 per cent over the next three years.

4 The purchase of a machine

Reference no: EM131436039

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