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NEW QUESTION: 1
Which of the following statements is (are) true with respect to expensing or capitalizing intangible costs?
I). When developing patented content internally, only the legal expenses associated with the patent may be capitalized.
II). The cost associated with acquiring a brand must be expensed in the year of the acquisition.
III). The costs involved in developing software should be capitalized.
IV). In general, research and development expenses may be capitalized as per the matching principal.
A. I only.
B. II and III.
C. I and IV.
Answer: A
Explanation:
II is incorrect because such costs may indeed be capitalized.
III is incorrect because development costs may only be capitalized only after the software becomes feasible.
IV is incorrect because R & D expenditures are actually expensed in the year they occur. This procedure complies with the conservatism principle in which R & D activities are not always expected to pay off and thus they should be expensed rather than capitalized.

NEW QUESTION: 2
When constructing a staffing schedule for the internal audit activity (IAA), which of the following criteria are most important for the chief audit executive to consider for the effective use of audit resources?
1.The competency and qualifications of the audit staff for specific assignments.
2.The effectiveness of IAA staff performance measures.
3.The number of training hours received by staff auditors compared to the budget.
4.The geographical dispersion of audit staff across the organization.
A. 1 and 3
B. 1 and 4
C. 2 and 3
D. 2 and 4
Answer: B

NEW QUESTION: 3
A company calculating shipping volume in unit load device containers is focusing on which mode of transportation'?
A. Trucking
B. Ocean shipping
C. Barges
D. Air freight
Answer: D

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• ISACA COBIT Foundation
• ISACA Certified Entry Networking Technician