Franz and Jason are discussing the amortization of intangible Assets. The patent has economic useful life of 30 years, legal life is 20 years. Jason says that intangible Assets should be amortized based on economic useful life. Franz disagrees, saying that patent should be based on legal life. Who is correct? Jayson is correct, because patent is a technology-related asset and should be based on market condition Franz is correct, because intangible assets is a registered asset to intellectual property office and must be based on legal life. Neither Jayson or Francis correct. Franz is correct, because accounting standard requires to amortize whichever is shorter over legal or economic life. Question 45 Which is true about notes payable? A premium on notes payable happens when nominal rate is larger than effective interest rate Adiscount on notes payable would mean that its face value will be smaller than its initial carrying value. A premium on notes payable would mean that its face value will be larger than its initial carrying value. O Apremium en notes poble happens when nominal rate is smaller than elective interest rate Question 46 All are examples of determinable labilities, except: Uhed Revenue Accounts Payable O Provisions Employee-related Liabilities Question 47 Which of the following is true about liability ratios? The higher the Debt to Total Assets Ratio, the higher the risk the company may not be able to pay maturing debt Current Ratio is computed by dividing current litis by current assets Times Interest Camed Ratio is a luidity ratio O Working Capital is a solvency ratio Question 48 Which is true about corporate transactions? The excess of the issue price above the par value is recorded as a pain in the income statement Subscribed Share Capital account is recorded at the subscription price. Shares can be partly issued for the partial payment of subscription O Treasury shares are recorded at cost rather than par or stated value