Which of the Following Controls Is Not a Typical Internal

question 2

Multiple Choice

Which of the following controls is not a typical internal control over intangible assets?

• A) Procedures to provide reasonable assurance that decisions are appropriately made as to when to capitalize or expense research and development expenditures.
• B) Development of amortization schedules that reflect the remaining useful life of patents or copyrights associated with the assets.
• C) Procedures to identify and account for intangible asset impairment.
• D) All of the above are typical controls for intangible assets.

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Definitions:

Reversing Entry

An accounting method used to reverse the impact of certain journal entries made in the previous accounting period for the sake of simplicity in future record keeping.

Interest Accrued

The accumulated interest on a loan or bond that has not yet been paid to the lender.

Proceeds of a Note

The total amount of money generated or to be paid out from a promissory note or financial instrument.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a journal entry made at the end of the previous accounting period.