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Research and development costs incurred in developing a patent internally are not recorded as an intangible asset in the balance sheet

Research and development costs incurred in developing a patent internally are not recorded as an intangible asset in the balance sheet, but rather are expensed directly in the income statement.

 

 

12. International accounting standards allow firms to record development costs that benefit future periods as an intangible asset. 

 

 

 

13. Advertising costs that increase the value of trademarks are recorded to the asset account entitled Trademarks.

 

 

14. We expense internally generated intangible assets, such as research and development and advertising costs, as we incur them. 

 

 

15. A patent is an exclusive right to a published work such as a song, film, or painting.

 

 

16. A copyright is an exclusive right of protection given to the creator of a published work such as a song, film, painting, photograph, book, or computer software.

 

 

17. A trademark is a word, slogan, or symbol that distinctively identifies a company, product, or service.

 

 

18. When a firm develops a trademark internally through advertising, it does not record the advertising costs as an intangible asset, but rather expenses them in the income statement.

 

 

19. The franchisee’s initial fee is recorded as an expense on the income statement.

 

 

20. We record goodwill as an intangible asset in the balance sheet only when we purchase it as part of the acquisition of another company.

Jan 27 2020 View more View Less

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