Miko is preparing her homework for her accounting class.She is uncertain as to the proper handling of patents and copyrights on a firm's financial statements.Which of the following is correct?
A)Patents and copyrights are included with the firm's intangible assets on the balance sheet.
B)Patents and copyrights are included with the firm's long-term liabilities on the balance sheet.
C)Patents and copyrights are included with the firm's cost of goods sold on the income statement.
D)Patents and copyrights are included with the firm's fixed assets on the balance sheet.

Question

Quizplus · Accepted Answer

Patents and copyrights are considered intangible assets and should be included in the same category on the balance sheet as other types of intangible assets, such as trademarks or goodwill. They should not be included as long-term liabilities, cost of goods sold, or fixed assets.

Miko Is Preparing Her Homework for Her Accounting Class