During 2016, Frank Company incurred $200,000 in legal fees in defending a patent with a carrying value of $3,500,000 against an infringement. Farver's lawyers were successful with the defense of the patent. The legal fees should be
A) expensed in 2016 and classified as ordinary expense.
B) classified as an extraordinary item on the income statement for 2016.
C) capitalized and amortized over the remaining legal life of the patent.
D) capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter.
D
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Which of the following is a weak internal control over cash collections from receivables?
A) The credit department should have no access to cash. B) A credit department should evaluate customers' credit applications to determine whether they meet the company's approval standards. C) A company should have written approval standards for processing customers' credit applications. D) In order to avoid losing sales, all customers' credit applications should be approved.
In terms of online metrics, dwell rate measures:
A) the proportion of ad impressions that result in users clicking an advertisement B) the proportion of ad impressions that result in users mousing over the ad C) the proportion of ad impressions that result in users both clicking an advertisement or mousing over the ad D) the amount of time individuals spend with an advertisement