To which of the following material asset balances should an auditor object as not in accordance with U.S. GAAP?
a. Franchise fees paid
b. Increase in goodwill resulting from annual testing
c. Acquisition cost of an Internet domain name
d. Research and development costs that will be billed to a customer at a subsequent date
Ans: b. Increase in goodwill resulting from annual testing
You might also like to view...
Which of the following is not an internal control component identified in the COSO framework:
A. Monitoring activities B. Control environment C. Technology D. Risk assessment C. Technology
Which of the following is characteristic of the products/services that are best suited for long
distribution channels? A) The products are susceptible to breakage or spoilage. B) The products are sold to a mass market. C) The products are made to order or configured to suit a particular purpose. D) The products are targeted to a niche, discriminating audience.