The Acquisition Cost of an Intangible Asset Should Be Charged

question 69

True/False

The acquisition cost of an intangible asset should be charged to expense over the shorter of its legal or useful life.

Recognize the necessity of documenting petty cash transactions and reconciling checking accounts.

Comprehend the process and importance of bank reconciliations.

Understand procedural documents involved in purchasing and cash management processes.

Recognize the accounting treatment of petty cash adjustments and cash over or short situations.

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Definitions:

Externalities

Economic outcomes that impact third parties not directly involved, which can either be advantageous or disadvantageous.

Significant Costs

Expenses that are sufficiently large to impact an entity's financial decisions or financial statements.

Externalities

Economic impacts of a product or service on parties who do not directly participate in the transaction, which can be negative (pollution) or positive (vaccination benefits).

Referent Power

A form of influence based on the charisma and interpersonal appeal of the leader, rather than on formal authority.