When an Intangible Asset Is Acquired by an Exchange of Assets,which

question 10

Multiple Choice

When an intangible asset is acquired by an exchange of assets,which of the following measures will need to be considered in the determination of that cost?

• A)The fair value of the asset given up.
• B)The initial cost of the asset given up.
• C)The carrying amount of the asset received.
• D)The replacement cost of the asset received.

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Definitions:

Unearned Rent Revenue

Income received from tenants for periods of occupancy that have not yet occurred, classified as a liability until earned.

Rent Revenue

Income earned from leasing out property or other assets to others.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.