Which of the following statement is true?
A) Intangible assets should be recorded at fair market value.
B) Intangible assets should be recorded at cost.
C) Intangible assets should be recorded at future market value.
D) Intangible assets should not be recorded.

Question

Quizplus · Accepted Answer

In accordance with generally accepted accounting principles (GAAP), intangible assets should be recorded at cost, which includes all costs necessary to acquire or create the intangible asset. This includes purchase price, legal fees, and registration fees. Fair market value and future market value are not appropriate values to record intangible assets. Not recording intangible assets would result in a misstatement of financial statements.

Which of the Following Statement Is True