Patentex developed a new secret formula that is of great value because it resulted in a virtual monopoly. Patentex has capitalized all research and development costs associated with this formula. Greene, CPA, who is auditing this account, will probably
a. Confer with management regarding transfer of the amount from the balance sheet to the income statement
b. Confirm that the secret formula is registered and on file with the county clerk's office
c. Confer with management regarding a change in the title of the account to goodwill
d. Confer with management regarding ownership of the secret formula
Ans: a. Confer with management regarding transfer of the amount from the balance sheet to the income statement
You might also like to view...
Which of the following is true of the price-fixing clause?
A. It is a provision forbidding a licensee from competing with the licensor. B. It specifies only the minimum prices. C. It forbids a licensee from entering into agreements to acquire or distribute technologies or products that compete with ones furnished or designated by the licensor. D. It requires a licensee to sell products at a price specified by the licensor.
A car wash services 200 customers in a 4-hour span on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour. An appropriate measure of productivity is:
A) 200 cars/hour. B) 0.6 $/car. C) 8.3 cars/$. D) 1.7 cars/$.