Regarding Trends in Intangible Asset Reporting, Which of the Following

question 27

Multiple Choice

Regarding trends in intangible asset reporting, which of the following statements is NOT true?

• A)Intangible assets, along with goodwill, have been decreasing as a proportion of companies' reported assets.
• B)The most common types of intangible assets reported are broadcast rights, publishing rights, trademarks, patents, licences, customer lists, non-competition agreement, franchises and purchased R&D.
• C)Intangibles are an important contributor to entity performance and financial position.
• D)Intangible assets, along with goodwill, have been increasing as a proportion of companies' reported assets.

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Definitions:

Fiscal Year

A fiscal year is a one-year period designated for accounting and financial reporting purposes, differing from the traditional calendar year.

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Accounting Equation

A fundamental principle of accounting representing the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).

Cash Refund

An amount paid by the seller to the buyer for merchandise that is defective, is damaged during shipment, or does not meet the buyer’s expectations.