Research and development costs are expensed when incurred whether they produce a patent or not.

Research and development costs are expensed when incurred whether they produce a patent or not.

Which of the following statements is false?

Research and development costs are expensed when incurred, except when the research and development expenditures result in a successful patent.

Goodwill is recorded only when a business is purchased.

If an intangible asset has a finite life, it should be amortized.

	The amortization period of an intangible life can exceed 20 years.
Cost is not a measure of how a depreciable asset contributes to revenue-producing activities. The useful life of a depreciable asset can be expressed in years, units, or hours.

Which of the following is not a way to express the useful life of a depreciable asset?

Five years

Cost of acquisition

Ten thousand machine hours

	Thirty thousand units
An impairment is recognized when a permanent decline in the market value of an asset exists.

A permanent decline in the market value of an asset is called

an impairment.

a disposal.

a capital expenditure.

a write-down.