Question

Match the statement with the term most directly associated with it.(a) Goodwill(b) Intangible assets(c) Research and development costs(d) Franchise(e) Amortization1. _________ Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.2. _________ The allocation of the cost of an intangible asset to expense in a rational and systematic manner.3. _________ A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.4. _________ Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.5. _________ The excess of the cost of a company over the fair market value of the net assetsacquired.Match intangibles classifications concepts

Answer 1

(a) & (5)

(b) & (1)

(c) & (4)

(d) & (3)

(e) & (2)

Step-by-step explanation:

1. Intangible assets: Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.

2. Amortization: The allocation of the cost of an intangible asset to expense in a rational and systematic manner.

3. Franchise: A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.

4. Research and development costs: Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.

5. Goodwill: The excess of the cost of a company over the fair market value of the net assets acquired