Asked by Starr Holstick on May 29, 2024
Verified
Which of the following is not true regarding the accounting for the cost of intangibles per GAAP? Category Account for cost by I. Purchased identifiable intangibles Capitalizing all cost II. Purchased uniclentifiable intangibles Capitalizing all cost III. Internally developed identifiable intangibles Capitalizing all cost IV. Internally developed uridentifiable intangibles Expensing all costs\begin{array}{lll}&\text { Category }&\text { Account for cost by}\\ \text { I. } & \text { Purchased identifiable intangibles } & \text { Capitalizing all cost } \\ \text { II. } & \text { Purchased uniclentifiable intangibles } & \text {Capitalizing all cost } \\ \text {III.} & \text { Internally developed identifiable intangibles } & \text { Capitalizing all cost } \\ \text {IV.} & \text { Internally developed uridentifiable intangibles} & \text { Expensing all costs} \\\end{array} I. II. III.IV. Category Purchased identifiable intangibles Purchased uniclentifiable intangibles Internally developed identifiable intangibles Internally developed uridentifiable intangibles Account for cost by Capitalizing all cost Capitalizing all cost Capitalizing all cost Expensing all costs
A) I
B) II
C) III
D) IV
GAAP
Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to guide the recording and reporting of financial information.
Intangibles
Intangibles refer to non-physical assets that have value, such as patents, copyrights, trademarks, and goodwill.
- Identify the methods used in handling acquired intangible assets and goodwill within accounting practices.
Verified Answer
MB
Mohammed BaselmJun 04, 2024
Final Answer :
C
Explanation :
For internally developed identifiable intangibles, not all costs are capitalized. Some costs are expensed as incurred, such as research and development costs, while only certain development costs meeting specific criteria are capitalized.
Learning Objectives
- Identify the methods used in handling acquired intangible assets and goodwill within accounting practices.