Which of the following statements is most accurate? A company that has developed intangible assets internally will:

A. recognize a lower amount of assets than a company that has obtained intangible assets through an external purchase.
B. recognize a higher amount of assets than a company that has obtained intangible assets through an external purchase.
C. report an amount of assets that is equivalent to that of a company that has obtained intangible assets through an external purchase.

Correct Answer: A

A company that has developed intangible assets internally will recognize a lower amount of assets than a company that has obtained intangible assets through an external purchase. This results from the fact that the costs to internally develop intangible assets are expensed and not capitalized when incurred.