Indicate Whether Each of the Following Statements Is True or False

question 61

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) Plant assets are classified as long-term assets, while intangible assets are treated as current assets.
_____ b) Intangible assets include patents, copyrights, and goodwill.
_____ c) The cost of most intangible assets should be amortized over the asset's useful life.
_____ d) The cost of land should be depleted over its useful life.
_____ e) The cost of a natural resource should be expensed (depleted) over its useful life.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Merchandise Inventories

Goods that are held by a business for the purpose of resale to customers in the ordinary course of business.

Sales Budget

An estimate of expected sales revenue for a period, forming the basis for planning production, inventory, and cash flow.

Cash Receipts

The total amount of money received by a company during a given period, including all sources of income and revenue.