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Match the statement with the term most directly associated with it.
Goodwill.......... AmortizationIntangible assets....... FranchiseResearch and development costs
1. _______ Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.
2. _______The allocation of the cost of an intangible asset to expense in a rational and systematic manner.
3. ________A right to sell certain products or services, or use certain trademarks or trade names within a designated geographic area.
4. ________Costs incurred by a company that often lead to patents or new products. These costs must be expensed as incurred.
5. _______The excess of the cost of a company over the fair market value of the net assets required.
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Under which scenario is basis risk likely to exist?
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