Which Statement Concerning the Accounting Treatment of Intangible Assets Under

question 16

Multiple Choice

Which statement concerning the accounting treatment of intangible assets under IAS 38/AASB 138 is true?

• A) Goodwill can be purchased or sold as a separate asset.
• B) Any internally generated trademark or brand name can be recognised as an asset.
• C) IAS 38/AASB 138 accepts the view that some intangible assets have unlimited lives and therefore should not be amortised.
• D) An intangible asset is defined as an asset without physical substance.

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Definitions:

Embargo Act

Legislation passed in 1807 by the United States Congress, prohibiting American ships from trading in all foreign ports to avoid conflicts.

Devastating

Causing severe shock, distress, or destruction.

Pan-Indian Movement

A social and political movement among Indigenous peoples in the Americas aimed at promoting unity and common interests across tribal lines.

Tecumseh

A Native American leader of the Shawnee who played a major role in the early 19th century in resisting the expansion of the United States into native territory.