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:

Fertilized Egg

A zygote formed when a sperm cell successfully merges with an ovum (egg cell), marking the beginning of pregnancy.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.

German Measles

A contagious viral disease, also known as rubella, characterized by a red rash, fever, and swollen lymph nodes, often mild in children but potentially serious in pregnant women.

Deafness

The condition of lacking the power of hearing or having impaired hearing.