The Cost of an Intangible Asset

question 101

Multiple Choice

The cost of an intangible asset:

• A)should be immediately charged to expense if the cost was incurred to develop the intangible asset.
• B)should be immediately charged to expense whether the intangible asset was developed internally or purchased.
• C)should be recorded as an asset whose cost, like the cost of land, will not be allocated to expense.
• D)should be charged to expense over the life of the intangible asset.

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Definitions:

Biological Factors

Refer to physiological, genetic, and neurological conditions that affect an individual's behavior and traits.

Social Factors

Aspects of society that influence individuals' behaviors, attitudes, and life chances.

Life Span

The maximum or average duration of life of an organism or a category of organisms.

Personality Develops

The process by which an individual's characteristic patterns of thinking, feeling, and behaving are established and change over time.