According to Generally Accepted Accounting Principles,the Proper Accounting Treatment for the Cost

question 190

Multiple Choice

According to generally accepted accounting principles,the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to

• A) write the cost off immediately.
• B) amortize the cost over a reasonable life.
• C) amortize the cost over five years.
• D) carry the cost as an asset indefinitely.

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Definitions:

Payroll Tax

Taxes that are withheld from an employee's salary by their employer and paid to the government, often used to fund social security and Medicare.

Social Security

A government program designed to provide financial support to people who are retired, disabled, or unable to work.

Corporate Sector

The portion of an economy comprised of corporations, including businesses and enterprises, engaged in commercial or industrial activities.

Medicare Tax

A federal payroll tax imposed on both employees and employers to fund Medicare, the United States' health care program for the elderly and some disabled individuals.