This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: life appears to be indefinite (such as in the case of a valuable trade name that is purchased from another entity)? A company does not amortize an intangible asset (3) What is a franchise? Over what period should the cost of a franchise be amortized? It is a contractual agreement under which the franchisor grants the franchisee the right to sell certain products or services, to use certain trademarks or trade names, or to perform certain functions usually within a designated geographical area. A company should amortize the cost of a franchise or license with a limited life as operating expense over the life of the franchise. (4) Under what circumstances is goodwill recognized (recorded) as an asset? What are a couple of reasons why internally developed goodwill is not recognized?...
View Full Document
This note was uploaded on 09/02/2011 for the course MGT 3305 taught by Professor Reed during the Spring '08 term at Baylor.
- Spring '08