6 Questions
Which type of cost is typically included in the valuation of purchased intangibles?
Purchase price
What is the typical treatment of internally created intangibles?
Generally expensed
Which of the following is considered a common type of intangible asset?
Franchises or licenses
Which of the following is a characteristic of intangible assets?
They lack physical existence
What costs are typically included in the valuation of purchased intangibles?
Purchase price and legal fees
How are internally created intangibles typically treated?
Recorded at cost and generally expensed
Study Notes
Intangible Assets
- Purchased intangibles typically include development costs, legal fees, and other expenditures related to acquisition in their valuation.
- Internally created intangibles are typically expensed as research and development costs, rather than capitalized as assets.
- Patents, copyrights, trademarks, and trade secrets are common types of intangible assets.
- Intangible assets are characterized by their lack of physical existence, making them non-physical.
- Costs typically included in the valuation of purchased intangibles include development costs, legal fees, and other expenditures related to acquisition.
- Internally created intangibles are typically expensed as incurred, rather than being capitalized as assets.
Test your knowledge of intangible assets with this quiz. Learn about the characteristics and valuation of intangibles such as patents, copyrights, trademarks, and goodwill. Understand how these assets are recorded and classified on the balance sheet.
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