According to Generally Accepted Accounting Principles,the Proper Accounting Treatment for the Cost

question 190

Multiple Choice

According to generally accepted accounting principles,the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to

• A) write the cost off immediately.
• B) amortize the cost over a reasonable life.
• C) amortize the cost over five years.
• D) carry the cost as an asset indefinitely.

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Definitions:

Maximization

The strategy of seeking the best possible outcome or the most utility in decision-making, often contrasting with satisficing, which settles for a good enough option.

Overgeneralizations

A cognitive distortion where an individual extends the conclusion or judgment of one incident to other unrelated areas of life.

Borderline Personality Disorder

A mental health disorder characterized by pervasive instability in moods, behavior, self-image, and functioning, often leading to impulsive actions and unstable relationships.

Sustained Empathy

A consistent, ongoing ability to understand, share, and respond to the emotional state and experiences of another person.