Explain how the accounting treatment differs between purchased and internally developed intangible assets.
What will be an ideal response?
We value purchased intangible assets at their original cost plus all other costs, such as legal and filing fees, necessary to get the asset ready for use. Reporting intangible assets developed internally is quite different. Rather than recording these as an intangible asset in the balance sheet, we expense most of the costs for internally developed intangible assets in the income statement as we incur them.
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Audit reports are designed to promote clear communication between the auditor and the financial statement user. Which of the following is not delineated in the audit report?
a. What was audited and the relative responsibilities of the client and the auditor. b. The experience level of the audit team. c. The nature of the audit opinion formulation process. d. The auditor's opinion on the fairness of the financial statements.
One-third of the steel units ________ sold, but that one ________
A) have been/wasn't B) been/weren't C) have been/weren't D) been/wasn't
One major impact of new media technology for the building and maintaining of organization-public relationships is which one of the following?
A. Loss of media credibility D. Less communication with colleagues B. A switch to printed media E. More interactive communication C. Increased use of the grapevine
Parol evidence is allowed to explain ambiguous terms
Indicate whether the statement is true or false