1-Which of the following items is not an intangible asset?

a.Patent

b.Land

c.Copyright

d.Trademark

2. Which of the following characteristics do intangible assets possess?

a. Physical existence.

b. Claim to a specific amount of cash in the future.

c. Long-lived.

d. Held for resale.

3. In the accounting records, the fixed assets are normally recorded

a. At cost

b. At book value

c. At scrap value

d. At replacement value

4.Depreciation follows which accounting concept

a.Historical cost concept

b. Matching concept

c.Money measurement concept

d. Going concern concept

5.Which of the following is not a method of depreciation?

a. Revaluation

b. Reducing balance

c. Replacement method

d. Straight line

Q1. What are the major characteristics of plant assets?

Q2. What interest rates should be used in determining the amount of interest to be capitalized? How should the amount of interest to be capitalized be determined?