Which of the Following Statements Is True of Intellectual Property

question 92

Multiple Choice

Which of the following statements is true of intellectual property?

• A) Intellectual property requires that certain types of information are not disclosed to the public.
• B) The type of information is irrelevant in determining the time, effort, and money required to convert intellectual property to intangible assets.
• C) The basic economic system of intellectual property is grounded in the idea of incentives.
• D) There is little correlation between research and development (R&D) and intellectual property in determining the competitive advantage of a firm.
• E) An economic system based on intellectual property presumes that the long-term benefits of increased information and investment are lower than the short-term costs.

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Definitions:

Adjusting Entry

A journal entry made in an accounting period to adjust income or expense accounts to accurately reflect the revenues earned and expenses incurred during that period.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid or recorded in the company's accounts.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results over a specific period.