Which of the Following Statements Concerning Patents Is Correct

question 20

Multiple Choice

Which of the following statements concerning patents is correct?

• A) Research costs spent on internal patent development cannot be recognised as an asset under IAS 38/AASB 138.
• B) A patent in Australia gives the holder the exclusive right to produce and sell a particular product for a period of 50 years.
• C) A patent that is purchased from its holder is debited to an asset account and must be amortised over a maximum period of 15 years.
• D) A patent that has been capitalised is shown in the balance sheet on one line at its net value.

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Definitions:

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Movie Theater

A venue specifically designed for the viewing of films, with a large screen and auditorium seating.

Trust-Run Hospital

A healthcare institution managed and operated by a trust to provide medical services to the public.