![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
![Which of the following statements is correct?
O Intangible assets used in the operation of a business are always long term
O Some intangible assets convey exclusive rights which are represented only by tangible physical substance
O Intangible assets are obtained in two ways: acquisition from an external source or internally developed
O The process of recording the expiration of the economic benefits of an intangible asset is called depletion](https://content.bartleby.com/qna-images/question/42ae5d61-a9d8-4ccc-9c50-01af5b30f96f/fd357e15-2f3a-4f35-b2e8-44cb8f122316/36n81_thumbnail.jpeg)
Transcribed Image Text:Which of the following statements is correct?
O Intangible assets used in the operation of a business are always long term
O Some intangible assets convey exclusive rights which are represented only by tangible physical substance
O Intangible assets are obtained in two ways: acquisition from an external source or internally developed
O The process of recording the expiration of the economic benefits of an intangible asset is called depletion
![Which of the following is not an objection to the use of the straight-line method of depreciation?
O it generally results in the lowest earnings
O it does not recognize the investment characteristics of the ownership of operational assets
O it may not satisfactorily match expense with revenue, depending on the asset
O it tends to ignore obsolescence as a major source of decline in economic value](https://content.bartleby.com/qna-images/question/42ae5d61-a9d8-4ccc-9c50-01af5b30f96f/fd357e15-2f3a-4f35-b2e8-44cb8f122316/gmhj9u_thumbnail.jpeg)
Transcribed Image Text:Which of the following is not an objection to the use of the straight-line method of depreciation?
O it generally results in the lowest earnings
O it does not recognize the investment characteristics of the ownership of operational assets
O it may not satisfactorily match expense with revenue, depending on the asset
O it tends to ignore obsolescence as a major source of decline in economic value
Expert Solution
![Check Mark](/static/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 4 steps
![Blurred answer](/static/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- In the case study of Company XYZ's challenges in accounting for goodwill and intangible assets impairment, which factor poses a risk to the value of intangible assets such as patents and software? A) Technological advancements B) Annual amortization C) Lack of impairment testing D) Economic stabilityarrow_forwardTRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.arrow_forwardWhat method does a company use to depreciate its property and equipment? A. Activity-based method B. Double-declining-balance method C. Straight-line methodarrow_forward
- Property, plant and equipment (fixed assets) assets are depreciated because: a. The accrual basis of accounting requires matching of costs to revenues. b. Cash basis of accounting requires depreciation. c. The book values equal market values. d. The replacement cost of plant assets may fluctuate over time.arrow_forwardWhich statement concerning depreciation is false? a.The only property that has a determinable life is depreciable. B.Land is not depreciable. C.Intangible assets' capital costs are recovered through amortization, much like depreciation. D.Personal property converted to business use is not depreciable since it was once used for personal purposes.arrow_forwardOne factor that is not considered in determining the useful life of an intangible asset is * Residual value Provision for renewal or extension Expected action of competitors Legal life When a patent is amortized, the credit is usually made to * The patent account As accumulated amortization account An expense account An accumulated depreciation account A trademark is an example of which category of intangible asset? Artistic-related Contract-based Customer-related Market-related Which is a research and development cost? * Research and development performed under contract for others Development or improvement of technique and process Offshore oil exploration that is the primary activity of an entity Market research related to a major product for the entity O O O O O O O Oarrow_forward
- Which of the following costs incurred internally to create an intangible asset is generallyexpensed? a. Research and development costs.b. Filing costs.c. Legal costs.d. All of the above.arrow_forwardWhat is the effective life of an asset? a. The total period of ownership of the asset, including when it is not installed and ready for use.. b. The period prior to the asset being abandoned or scrapped. c. The period that the asset can be used for income-producing purposes. d. All of the above.arrow_forwardResearch and development is an internally developed intangible asset that should be: capitalized and amortized over its finite life. capitalized and reviewed for impairment over its indefinite life. expensed as incurred. treated differently from any of these choices.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education