In Accordance with Generally Accepted Accounting Principles,which of the Following

question 38

Multiple Choice

In accordance with generally accepted accounting principles,which of the following methods of amortization is normally recommended for intangible assets?

• A) Sum-of-the-years'-digits
• B) Straight-line
• C) Group composite
• D) Double-declining-balance

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Definitions:

Expected Variance

A statistical measure that represents the dispersion of possible returns of an investment, used in portfolio theory to gauge risk.

Probability Distribution

A quantitative function that assesses and represents every imaginable value and probability for a random variable within a certain limit.

Stock of the Economy

An aggregate representation of the total value of all publicly traded companies within an economy.

Nominal Rate of Interest

The stated interest rate of a bond or loan without adjusting for inflation or other factors that affect the true cost of borrowing.