Which of the Following Statements Is Correct with Respect to Intangible

question 35

Multiple Choice

Which of the following statements is correct with respect to intangible assets?

• A) Internally generated publishing titles may be revalued if fair value is determined by reference to an active market.
• B) Purchased goodwill should be amortised over a period of twenty years.
• C) Internally generated brands are not recognized as intangible assets because expenditures in these assets are not distinguishable from the cost of developing the business as a whole.
• D) Internally generated brands are recognized as intangible assets because expenditures in these assets are not distinguishable from the cost of developing the business as a whole.
• E) None of the given answers.

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Definitions:

Direct Method

A method of preparing the cash flow statement where major classes of gross cash receipts and payments are disclosed.

Least Accurate

Describes the closest to being incorrect or the measurement or statement that has the highest degree of inaccuracy.

Reciprocal Services Method

A method of allocating support department costs to production departments that considers all inter-support-department services.

Sequential Method

A process or analytical approach where steps are followed in a specific, sequential order to achieve a desired result or solution.