Asked by DeNae Schoel on May 08, 2024
Verified
Describe the accounting for intangible assets,including their acquisition,cost allocation,and accounts involved.
Intangible Assets
Assets that lack physical substance but possess economic value, including intellectual property, trademarks, and goodwill.
Cost Allocation
The process of distributing or assigning an organization's costs, or expenses, across various departments, projects, or products.
Asset Acquisition
Asset acquisition refers to the process of obtaining control over assets, typically through purchase or lease, for use in operations.
- Describe and apply the accounting for intangible assets including amortization processes.
Verified Answer
SG
sahadevan govindMay 13, 2024
Final Answer :
Intangible assets are recorded at acquisition cost and are debited to asset accounts.Allocation of the cost of an intangible asset with a definite life to expense is done by using the straight-line method and is called amortization.Amortization is recorded with a credit to accumulated amortization.Intangible assets with indefinite lives are not amortized.Intangible assets are reported on the balance sheet at their cost minus accumulated amortization.
Learning Objectives
- Describe and apply the accounting for intangible assets including amortization processes.