Under GAAP, the economic asset a company has developed by its advertising, which has resulted in a widely recognized brand name, is valued on the balance sheet using
A) Nonrecognition
B) Historical cost, using the value of the advertising campaigns as the cost
C) Historical cost, minus amortization using a 20-year life
D) Fair value

Question

Quizplus · Accepted Answer

Under GAAP, internally developed intangible assets such as brand recognition from advertising are not capitalized on the balance sheet. Instead, the costs associated with advertising are typically expensed as incurred, following the principle of nonrecognition for such internally generated intangible assets.

Under GAAP, the Economic Asset a Company Has Developed by Its