Unless Acquired Under a Business Combination, Intangible Assets Must Be

question 6

Multiple Choice

Unless acquired under a business combination, intangible assets must be initially measured using which of the following measurement approaches?

• A) Net present value.
• B) Cost.
• C) Diminishing value.
• D) Fair value.

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Definitions:

Tender

An offer of payment or service in fulfillment of an obligation, such as in contract performance or debt repayment.

Material Breach

A significant violation or failure to perform a contract's stipulated duty, justifying the other party's termination of the agreement.

Nonbreaching Party

An entity or individual in a contract who has not violated any terms of the agreement.

Satisfaction

The fulfillment or discharge of an obligation such as paying off a debt, completing a contractual duty, or resolving a legal claim.