1. Judgment is involved in determining whether a trademark is classified as finite-lived or indefinite-lived.

True

False

2. In certain situations, goodwill is treated as a finite-lived intangible.

True

False

3. Firms determine whether to use the lower-of-cost-or-market or the lower-of-cost-or-net-realizable-value based on the type of inventory that they hold.

True

False

4If a company plans to construct a building on a plot of a land to use as a manufacturing center within the next 5 years, the firm should record the land as Property, Plant, and Equipment.

True

False

5If the net book value of Property, Plant, and Equipment exceeds the fair value of that asset, impairment is recognized.

True

False

6Goodwill can be treated as a current asset.

True

False

7If a firm incurs a cost that increases the economic output of a machine, the company should record this expenditure as an asset, rather than an expense.

True

False

8If an asset is in still in service, a firm must recognize depreciation expense related to that asset.

True

False

9All intangibles must be evaluated for impairment on an annual basis.

True

False

10Under the lower-of-cost-or-market, the market cost should never exceed the net realizable value of inventory less expected profit margin.

True

False