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Unformatted text preview: the Power Point presentation, it says the cost of developing a trademark is "expensed". I'm not sure if I'm over thinking this, but I am not quite sure if I'm answering the homework problems for E12-1 correctly. Also, is it right to say that intangible items will go on the Income Statement, and expenses will go on the Balance Sheet? "Recording expenses as incurred" means that a journal entry is done at the time that the event takes place to record the cost as an expense. It appears that you are over thinking this. All of the examples that you gave of the different types of wording mean the same - the cost is shown as an expense. Intangibles are assets and therefore are shown on the balance sheet. Revenues and expenses are shown on the income statement....
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This note was uploaded on 07/14/2011 for the course ACCT 321 taught by Professor Collins during the Spring '10 term at University of Maryland Baltimore.
- Spring '10