Firms recognize expenditures to acquire intangibles externally from third parties as _____ if the intangibles are either separable or arise from contractual or other legal rights.
A)assets
B)liabilities
C)retained earnings
D)revenue
E)expenses

Question

Quizplus · Accepted Answer

Expenditures to acquire intangibles externally from third parties are recognized as assets if they are either separable or arise from contractual or other legal rights. This is in accordance with accounting standards such as IFRS and US GAAP.

Firms Recognize Expenditures to Acquire Intangibles Externally from Third Parties