Patents and Trade Secrets Are Examples of

question 61

Multiple Choice

Patents and trade secrets are examples of

• A)ESOPs.
• B)heuristics.
• C)franchising.
• D)intangible assets.

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Definitions:

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.

Accrued Expense

Expenses incurred but not yet paid or recorded at the end of an accounting period, recognizing expenses when they are incurred, not when they are paid.

Salary Owed

The amount of money that an employer is required to pay to an employee for work performed, which has not yet been paid at the statement date.

Unearned Gym Memberships

Income received by a gym or fitness center from memberships that have been paid for but not yet fully utilized, considered a liability until the services are rendered.