Which of the Following Is an Example of an Intangible

question 78

Multiple Choice

Which of the following is an example of an intangible with an indefinite life?

• A)a copyright on a song
• B)a patent on a new technology
• C)the development costs of a new drug
• D)the goodwill value assigned to the excess purchase price when purchasing a company

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Definitions:

Least Accurate

Describes the closest to being incorrect or the measurement or statement that has the highest degree of inaccuracy.

Reciprocal Services Method

A method of allocating support department costs to production departments that considers all inter-support-department services.

Sequential Method

A process or analytical approach where steps are followed in a specific, sequential order to achieve a desired result or solution.

Direct Method

A way of preparing a cash flow statement where actual cash receipts and payments are reported, rather than adjusting net income for accruals.