Which of the Following Is the Correct Accounting Treatment for a Patent

question 165

Multiple Choice

Which of the following is the correct accounting treatment for a patent?

• A) A patent must be shown as a current asset on the balance sheet.
• B) A patent must be depreciated or impaired, but not amortized.
• C) A patent must be capitalized and amortized over 20 years or less.
• D) A patent must be expensed, not capitalized, in the period in which it is purchased.

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Definitions:

Anisotropic Band

A region within myofibrils of skeletal muscle cells that appears darker under a microscope due to the presence of thick myosin filaments.

Neuromuscular Junction

The neuromuscular junction is a synapse between a motor neuron and the muscle fiber it innervates, facilitating muscle contraction.

Synaptic Vesicles

Small sacs within axon terminals that store neurotransmitters, which are released into the synaptic cleft during synaptic transmission.

Synaptic Cleft

The narrow gap between the presynaptic and postsynaptic neurons into which neurotransmitters are released to convey impulses across the synapse.