Which of the following is not true regarding the accounting for the cost of intangibles per GAAP? Category Account for cost by I. Purchased identifiable intangibles Capitalizing all cost II. Purchased uniclentifiable intangibles Capitalizing all cost III. Internally developed identifiable intangibles Capitalizing all cost IV. Internally developed uridentifiable intangibles Expensing all costs \begin{array}{lll} & ext { Category } & ext { Account for cost by}\ ext { I. } & ext { Purchased identifiable intangibles } & ext { Capitalizing all cost } \ ext { II. } & ext { Purchased uniclentifiable intangibles } & ext {Capitalizing all cost } \ ext {III.} & ext { Internally developed identifiable intangibles } & ext { Capitalizing all cost } \ ext {IV.} & ext { Internally developed uridentifiable intangibles} & ext { Expensing all costs} \\end{array} I. II. III. IV. Category Purchased identifiable intangibles Purchased uniclentifiable intangibles Internally developed identifiable intangibles Internally developed uridentifiable intangibles Account for cost by Capitalizing all cost Capitalizing all cost Capitalizing all cost Expensing all costs A) IB) IIC) IIID) IV

Question

Which of the following is not true regarding the accounting for the cost of intangibles per GAAP?    Category   Account for cost by  I.   Purchased identifiable intangibles   Capitalizing all cost   II.   Purchased uniclentifiable intangibles  Capitalizing all cost  III.  Internally developed identifiable intangibles   Capitalizing all cost  IV.  Internally developed uridentifiable intangibles  Expensing all costs \begin{array}{lll} & 	ext { Category } & 	ext { Account for cost by}\ 	ext { I. }  &   	ext { Purchased identifiable intangibles }  &   	ext { Capitalizing all cost } \ 	ext { II. }  &   	ext {  Purchased uniclentifiable intangibles  }  &   	ext {Capitalizing all cost  } \ 	ext {III.}  &   	ext { Internally developed identifiable intangibles  }  &   	ext { Capitalizing all cost } \ 	ext {IV.}  &   	ext {  Internally developed uridentifiable intangibles}  &   	ext {  Expensing all costs} \\end{array}  I.   II.  III. IV. ​  Category   Purchased identifiable intangibles   Purchased uniclentifiable intangibles   Internally developed identifiable intangibles   Internally developed uridentifiable intangibles ​  Account for cost by  Capitalizing all cost  Capitalizing all cost   Capitalizing all cost   Expensing all costs ​ A) IB) IIC) IIID) IV

Mohammed Baselm · Accepted Answer

Final Answer : C, Explanation :  For internally developed identifiable intangibles, not all costs are capitalized. Some costs are expensed as incurred, such as research and development costs, while only certain development costs meeting specific criteria are capitalized.

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