42. When a patent is amortized, the credit is usually made to A) the Patents account. B) an Accumulated Amortization account. C) an expense account. D) a Deferred Credit account. 43. Which of the following costs incurred internally to create an intangible asset is generally expensed? A) Research and development costs. B) Filing costs. C) Legal costs D) All of these answer choices are correct. 44. The basis for classifying assets as current or noncurrent is conversion to cash within A) B) C) D) the operating cycle or one year, whichever is shorter. the accounting cycle or one year, whichever is shorter. the operating cycle or one year, whichever is longer the accounting cycle or one year, whichever is longer 45. Accrual accounting is used because A) B) C) D) it provides a better indication of a company's ability to generate cash flows than the cash basis. cash flows are considered less important. it recognizes revenues when cash is received and expenses when cash is paid. it provides past ability to generate negative cash flows. 46 Thefailur to poperdnsing caryto scorue a revenue tie will c i an A) B) C) D) understatement of revenues and an understatement of assets. overstatement of revenues and an overstatement of assets. understatement of revenues and an understatement of liabilities. overstatement of revenues and an overstatement of liabilities. 47. Which of the following would represent the least likely use of an income statement prepared for a business enterprise? A) Use by labor unions to examine earnings closely as a basis for salary discussions B) Use by customers to determine a company's ability to provide needed goods and services. Use by government agencies to formulate tax and economic policy. Use by investors interested in the financial position of the entity. C) D)