Question

The following are all examples of abnormal items disclosed by the company, except: (4 points) A) Goodwill Impairment Charges B) Royalty Expense C) Intangible Asset Impairment Charges D) Restructuring Charges

Answer 1

Answer:

Correct Answer:

B) Royalty Expense

Explanation:

A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.