According to ASC 805-30,which One of the Following Items May

question 41

Multiple Choice

According to ASC 805-30,which one of the following items may not be accounted for as an intangible asset apart from goodwill?

• A)A production backlog
• B)A valuable employee workforce
• C)Noncontractual customer relationships
• D)Employment contracts

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Definitions:

Cash Cycle

The period between the outlay of cash for raw materials and receiving payment from customers for goods or services sold.

Inventory Period

The average time it takes for a company to sell through its inventory, calculated by dividing the total inventory by the cost of goods sold and then multiplying by 365 days.

Accounts Payable Period

The average time it takes for a business to pay off its suppliers and vendors.

Liquidity Reserves

Liquid assets held by an entity as a buffer against future contingencies or unforeseen expenses.