Many Users of Financial Statements Believe That the Quality of Accounting

question 35

Essay

Many users of financial statements believe that the quality of accounting information for intangible assets is low because firms seldom report intangible asset resources on the balance sheet.However,from the perspective of accounting quality what are arguments in favor of expensing most intangibles and not recording them on the balance sheet?

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Definitions:

Internet

A global network connecting millions of computers to facilitate data exchange.

Breadcrumb Trail

A navigation aid that shows users the path they have taken to get to a web page or where the page is located within the website; it usually appears at the top of a page.

Navigation

The process or activity of accurately ascertaining one's position and planning and following a route.

Web Page

A document accessible on the World Wide Web, consisting of an HTML file and any related files for scripts and graphics.