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:

Ethical Dilemma

A situation where one must make a decision between two or more morally correct actions that cannot both be undertaken.

8th Amendment

An amendment to the U.S. Constitution that prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.

Cruel and Unusual Punishment

Punishment that is considered unacceptable due to the suffering, pain, or humiliation it inflicts on the person subjected to it.

Deontological Theory

An ethical theory that suggests actions are morally right or wrong based on adherence to rules or duties, regardless of the outcomes.