USGAAP and IFRS Require Firms to Recognize as Assets Identifiable

question 198

Multiple Choice

U.S.GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are not true?

• A)The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits.
• B)In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits.
• C)In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.
• D)In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method.
• E)all of the above

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Definitions:

Glucose Transporter

Proteins that facilitate the transport of glucose across cell membranes, playing crucial roles in energy supply.

Cytoplasm

The jelly-like substance within a cell that contains organelles, cytosol, and cytoskeletal elements.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen, used in the making of various foods and beverages.

Cytoplasm

The jelly-like material within a cell, excluding the nucleus, that contains organelles and is the site of most cellular activities.