Which of the Following Is INCORRECT About the Measurement of Purchased

question 26

Multiple Choice

Which of the following is INCORRECT about the measurement of purchased intangible assets?

• A) Purchased intangible assets are measured at cost, which is their fair value at acquisition.
• B) Cost includes the acquisition cost and all expenditures necessary to make the intangible asset ready for its intended use.
• C) If an intangible asset is acquired due to a government grant, the asset is not recognized in the accounting records as there is no cost to the entity receiving the intangible asset.
• D) The cost of the intangible received in a nonmonetary exchange is the fair value of the consideration given or the fair value of the intangible received, whichever is more clearly evident.

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Definitions:

Generation X

The demographic cohort following the baby boomers and preceding the Millennials, typically defined as individuals born from the early-to-mid-1960s to the late 1970s.

Millennials

A demographic cohort following Generation X, typically referred to those born from the early 1980s to the mid-1990s to early 2000s.

Traditionalists

People or principles favoring traditional values and practices, especially in cultural or religious affairs.

Short-Lived

Refers to something that lasts for only a brief period.