An Intangible Asset May Be Recorded

question 35

Multiple Choice

An intangible asset may be recorded:

• A) if acquired from an external party at a cost.
• B) if it is internally generated and fits the definition of an asset and meets the associated recognition criteria.
• C) at a value other than cost if that value more reliably records the worth of the intangible asset.
• D) at the cost of the asset, which must exclude any additional expenditure required to prepare the asset for use.

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Definitions:

Sale of Goods Act

Legislation regulating the sale of goods, ensuring certain standards for transactions.

Title

The legal right to own, use, or dispose of property.

Sale of Goods Act

is a legal statute that governs the sale of goods, providing rights, duties, and obligations for both buyers and sellers in a transaction.

Risk

Risk involves the possibility of losing something of value or the potential for an action or event to lead to an undesired outcome, often quantified in terms of probability and impact.