Under GAAP, an asset that would typically be recorded at amortized cost would be
A) Land
B) Cash
C) A patent purchased from another company, with a 12-year life
D) Accounts receivable

Question

Quizplus · Accepted Answer

A patent purchased from another company is an intangible asset with a definite useful life, so it would typically be recorded at amortized cost using the straight-line method over its useful life. Land is not subject to depreciation or amortization, cash is recorded at face value and does not change in value over time, and accounts receivable are recorded at their current value and do not require amortization.

Under GAAP, an Asset That Would Typically Be Recorded at Amortized