Match the statement with the term most directly associated with it. 1. Amortizat
ID: 2462742 • Letter: M
Question
Match the statement with the term most directly associated with it.
1. AmortizationIntangible AssetsResearch and Development CostsGoodwillFranchise Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. 2. Intangible AssetsResearch and Development CostsAmortizationFranchiseGoodwill The allocation of the cost of an intangible asset to expense in a rational and systematic manner. 3. FranchiseAmortizationResearch and Development CostsGoodwillIntangible Assets A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area. 4. Intangible AssetsAmortizationResearch and Development CostsFranchiseGoodwill Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred. 5. GoodwillIntangible AssetsAmortizationResearch and Development CostsFranchise The excess of the cost of a company over the fair value of the net assets required.Explanation / Answer
1) Amortization The allocation of the cost of an intangible asset to expense in a rational and systematic manner. 2) Goodwill The excess of the cost of a company over the fair value of the net assets required. 3) Research & Development Costs Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred. 4) Intangible Asset Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. 5) Franchise A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.