Which of the following should be disclosed in the Summary of Significant Accounting Policies?
a. Rent expense amount
b. Maturity dates of long-term debt
c. Methods of amortizing intangibles
d. Composition of plant assets
The assets of the firm which are not present in the physical form but still contribute towards the growth of the business are known as the intangible assets. They are subjected to amortization due to regular usage or completion of their life span.
Answer and Explanation:
The correct option is c.
There are various stakeholders, such as shareholders, creditors, investors, and other parties with an interest in the company’s operations. These stakeholders seek to understand the fundamental accounting principles and practices adopted by the company. Therefore, a concise summary is provided to them, encompassing essential details like depreciation techniques, inventory valuation methods, and related pertinent information. This summary excludes any extraneous, irrelevant, or unrelated information.