Using the Straight-Line Method to Amortize Patents Is an Application

question 72

Multiple Choice

Using the straight-line method to amortize patents is an application of expense recognition using

• A) cause and effect
• B) a systematic and rational allocation over time
• C) immediate consumption
• D) the percentage-of-completion method

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Definitions:

Relatively Permanent Change

A lasting alteration in behavior or knowledge due to experience or learning.

Experience

The knowledge or skill acquired by a period of practical involvement in an activity or exposure to events or situations.

Reflexive Response

An automatic, involuntary reaction to a stimulus, such as the knee-jerk reflex.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.