The accounting life of intangible assets is determined by
a. their legal lives.
b. their useful lives.
c. their legal lives or useful lives, whichever is shorter.
d. the tax life mandated by the IRS.
c
You might also like to view...
A law enacted to punish a specific individual would be an example of a(n):
a. bill of attainder. b. ex post facto law. c. proscriptive law. d. per se law.
In a manufacturing plant, indirect materials costs such as lubricants and cleaning fluids are product costs
Indicate whether the statement is true or false
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The journal entry that Klein makes on March 20 is:
A.
| Cash | 7,056 | |
| Accounts receivable | 7,056 |
B.
| Cash | 7,644 | |
| Sales discounts | 156 | |
| Accounts receivable | 7,800 |
C.
| Cash | 7,800 | |
| Accounts receivable | 7,800 |
D.
| Cash | 7,056 | |
| Sales discounts | 144 | |
| Accounts receivable | 7,200 |
E.
| Cash | 4,500 | |
| Accounts receivable | 4,500 |
Discuss the limitations associated with using accounting data to measure competitive performance.
What will be an ideal response?