Current Accounting Standards Indicate That the Costs of Intangible Assets

question 92

Multiple Choice

Current accounting standards indicate that the costs of intangible assets with an indefinite life,such as goodwill,should

• A)not be amortized.
• B)be reported on the statement of retained earnings in the year in which acquired.
• C)be amortized over a reasonable period of time not to exceed 40 years.
• D)increase an expense account entirely in the year in which acquired.

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Definitions:

Clostridium Difficile

A bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon, often after the use of antibiotic medication.

Colostomy

A surgical procedure that creates an opening (stoma) from the large intestine to the abdominal surface to divert waste.

Fecal Impaction

A condition where stool becomes hard and dry, making it difficult to pass, and accumulates in the intestines or rectum.

Digitally Remove

The act of physically extracting something with one's fingers, especially in a medical or surgical context.