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

question 36

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 as long as circumstances continue to support an indefinite life.

Describe the restrictions on share transferability in closely held corporations.

Recognize the liability limitations of shareholders regarding corporate debts.

Comprehend the concept of a corporation as a separate legal entity and its implications for shareholders and directors.

Identify the legal framework for incorporating and the role of articles of incorporation.