Intangible Assets May Be Purchased or Developed

question 45

Multiple Choice

Intangible assets may be purchased or developed.If developed,they are categorized as Research and Development and

• A) depreciated over their useful life.
• B) amortized over their useful life.
• C) depleted over their useful life.
• D) expensed.

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Definitions:

Merchandise Purchases Budget

A financial plan that estimates the amount of inventory a company needs to buy to meet sales needs for a future period.

Sales Budget

A detailed plan that outlines projected sales for a future period, taking into account factors like marketing strategies and market conditions.

Sole Task

A sole task is a single duty or responsibility assigned to a person or a system.

Continuous Budgeting

A financial planning approach that involves continuously updating a budget by adding a new period as the current period is completed.