Patents and Copyrights Are Examples Of

question 50

Multiple Choice

Patents and copyrights are examples of:

• A)current assets.
• B)property, plant, and equipment assets.
• C)intangible assets.
• D)goodwill.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, simplifying accounting computations.

Salvage Value

The projected sale proceeds of an asset at the conclusion of its period of utility.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup its original cost.

Accounting Rate of Return

The accounting rate of return (ARR) is an accounting metric that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.