An Intangible Asset May Be Recorded

question 55

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.
• E) If acquired from an external party at a cost, and at the cost of the asset, which must exclude any additional expenditure required to prepare the asset for use.

---

Definitions:

Good Faith

A concept involving an honest intention to act without taking an unfair advantage over another party, typically implied in agreements or transactions.

Uncertified Check

A check that the bank has not guaranteed or verified regarding the availability of funds, standing in contrast to a certified check.

Presented For Payment

The act of submitting a financial instrument, such as a check or draft, to the responsible party for the transfer of funds as specified.

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time, with the payer named on the document.