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:

Increase Observation

Enhancing the act or process of closely monitoring or noticing something with careful attention.

Personal Routines

The habitual practices and activities that an individual performs regularly in their personal life.

Read People's Faces

The ability to interpret and understand emotions or intentions through facial expressions.

Customer Really Wants

The deep-seated desires or needs of customers, often beyond the surface-level demands or expectations, crucial for product development and marketing strategies.