Failure to Record Amortization Expense on a Patent During the Current

question 96

Multiple Choice

Failure to record amortization expense on a patent during the current year will result in which of the following?

• A)Net income will be overstated,but there would be no effect on total assets.
• B)Net income for the year and total assets would both be overstated.
• C)Assets will be overstated,but there would be no effect on net income for the year.
• D)Net income and assets will both be understated.

---

Definitions:

Gestalt

A psychological theory that proposes objects are viewed in their entirety before it is possible to perceive their parts, emphasizing holistic processing.

Behavioral

Relating to the actions or reactions of a person or animal in response to external or internal stimuli.

Behaviorism

A branch of psychology that studies observable behavior, emphasizing the role of environmental factors in shaping behavior, excluding subjective factors like feelings or motives.

Functionalism

A psychological perspective that considers mental life and behavior in terms of active adaptation to the person's environment.