Which of the following statements is true?
A)Intangible assets should be recorded at fair market value.
B)Intangible assets should be recorded at cost.
C)Intangible assets should be recorded at future market value.
D)Intangible assets should not be recorded.

Question

Quizplus · Accepted Answer

Intangible assets should be recorded at cost, which includes all costs necessary to acquire and prepare the asset for use. This may include legal fees, registration fees, and other related expenses. Fair market value and future market value are not appropriate measures for recording intangible assets on a company's balance sheet. Not recording intangible assets altogether would result in an incomplete and inaccurate financial statement.

Which of the Following Statements Is True