1 In accordance with the PFRSs, which of the following methods of amortization is normally not recommended for intangible assets?*

A. Units of production

B. Declining balance

C. Effective interest method

D. Straight line

2 A change in the amortization rate for an intangible asset should be accounted for*

A. by retrospective restatement.

B. by retrospective application.

C. on a prospective basis.

D. on a current basis.

3 Which of the following is an unidentifiable asset?*

A. Goodwill

B. Private-to-private franchise

C. Deferred charges

D. Unearned rent

4 If a franchise becomes worthless before the end of its useful life, the carrying amount of the franchise account should be charged as*

A. franchise expense in the current period.

B. a prior period adjustment.

C. impairment loss.

D. amortization expense.

5 Which of the following costs related to computer software is capitalized to an intangible asset account?*

A. Costs of duplication and reproduction of software for sale

B. Development costs before technological feasibility is achieved

C. Coding and testing costs incurred to establish technological feasibility

D. Coding and testing costs incurred after technological feasibility is established but before the product master is completed

6 The cost of a franchise is classified in the statement of financial position as a(n)*

A. operational asset.

B. deferred charge.

C. intangible asset.

D. current asset.