Question
1) Which of the following is not a characteristic of intangible assets? A) They lack physical existence B) They derive their value from rights C)
1) Which of the following is not a characteristic of intangible assets?
A) They lack physical existence B) They derive their value from rights C) They are a financial instrument D) They are long-term in nature
2) Intangible assets are often subdivided based on all of the following characteristics except:
A) All of the options are characteristics B) Manner of acquisition C) Indentifiability D) Expected period of benefit
3) All of the following are specifically identifiable intangibles except: A) Goodwill B) Patents C) Trademarks D) Copyrights
4)Intangible assets that have a finite life are amortized over a period not to exceed: A) Their legal life B) 20 years C) Their useful life D) 40 years
5) The cost of a patent should be amortized over its: A) The life of the creator plus 50 years B) The life of the creator plus 40 years C) 50 years D) The number of years that benefits are expected to be received
6) Goodwill is the excess of cost over: A) Book value of the tangible net assets acquired B) Fair value of the tangible net assets acquired C) Book value of the identifiable net assets acquired D) Fair value of the identifiable net assets acquired
7) An impairment of an identifiable intangible assets arises when its carrying amount exceeds the: A) Asset's cost B) Excepted future net cash flows C) Asset's fair value D) Present value of the excepted future net cash flows
8) An impairment of a goodwill arises when its carrying amount exceeds the A) Reporting unit's book value B) Expected future net cash flows C) Present value of excepted future net cash flows D) Reporting unit's assets fair value
9) Research costs:
A) Are intangible assets B) Include periodic alternatives to existing products C) Should be charged to expense when incurred D) Are usually small in dollar amount
10) All of the following expenditures are classified as research and development except: A) Engineering costs incurred to advance a new product to full production stage B) Acquisition of R&D equipment for use on a current project only C) Salaries or research staff designing a new product D) Costs of marketing research to promote a new product
11) Development costs may be capitalized if: A) All of the criteria must be met B) They relate to a clearly identifiable product C) The product is technically feasible D) The entity has sufficient resources to complete the project 12) The presentation of intangible assets in the financial statements: A) Includes R&D costs B) Should include disclosure of the amount of amortization in the period C) Involves the use of a contra-asset account D) Is the same as the presentation of property, plant, and equipment
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