The Cost of Long-Lived Assets with an Indefinite Life

question 157

Multiple Choice

The cost of long-lived assets with an indefinite life

• A)is not recognized as an expense each period.
• B)remains on the balance sheet at acquisition cost (unless an asset impairment occurs).
• C)is recognized as an expense each period.
• D)presents a balance sheet carrying value that decreases over time as the firm recognizes the cost of the asset as an expense.
• E)includes both choices a and b.

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Definitions:

Market Price

The current price at which a particular security, commodity, or asset can be bought or sold on the market.

Comprehensive Income

The total change in equity for a reporting period, including all revenues, gains, expenses, and losses.

Net Income

The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.

Foreign Currency Translation

Foreign Currency Translation is the process of converting the financial statements of a company into a single currency when it has operations in multiple currencies.