1) Which of the following statements about intangible assets isINCORRECT?

a.Internally recognized intangibles are never recognized on the statement of financial position.

b.Intangibles with finite lives are amortized but not tested for impairment.

c.They are capital assets that have no physical substance.

d.Intangibles with indefinite lives are not amortized but are tested for impairment.

2) Working capital is

a.cash invested by owners.

b.cash and receivables less current liabilities.

c.current assets less current liabilities.

d.capital which has been reinvested in the business.

3) Which of the following would NOT appear in the equity section of a statement of financial position?

a.Stock dividend distributable

b.Investment in affiliate

c.Preferred shares

d.Accumulated other comprehensive income

4) The current assets section of the balance sheet should include

a.machinery.

b.inventory.

c.patents.

d.goodwill.