U.S. GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are true?
a. The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits.
b. In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits.
c. In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.
d. In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method.
e. all of the above
E
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Accumulated Depreciation
a. increases assets. b. decreases assets. c. increases liabilities. d. decreases liabilities.
_____ is the proportion of time that the ASP's systems and communication links are up and running.
Fill in the blank(s) with the appropriate word(s).
The steps taken to move and store a product from the supplier stage to a customer stage in the supply chain are referred to as
A) transportation. B) retailing. C) wholesaling. D) distribution.
Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 50,000Total fixed manufacturing overhead cost$285,000Variable manufacturing overhead per direct labor-hour$3.80 Recently, Job P513 was completed with the following characteristics: Number of units in the job 10Total direct labor-hours 20Direct materials$710Direct labor cost$500The total job cost for Job P513 is closest to:
A. $1,210 B. $1,400 C. $900 D. $690