6The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account. This error would cause:

		the period's net income to be overstated.
		the period's net income to be understated.
		the period end assets to be overstated.
		None of these is correct.

7Which of the following is an example of an intangible asset?

		Land
		Goodwill
		Inventory
		Accounts Receivable

8A company purchases a patent for $40,000. The patent will be amortized over 5 years. The entry to record the amortization in the first year is:

		debit Patents $40,000; credit Cash $40,000.
		debit Amortization Expense, Patents $40,000; credit Patents $40,000.
		debit Amortization Expense, Patents $8,000; credit Patents $8,000.
		debit Patents $10,000; credit Amortization Expense, Patents $10,000.

9

The process of writing off a natural resource is:

		depreciation.
		depletion.
		amortization.
		None of these answers is correct.

10

Which if the following would NOT be an example of an intangible asset?

		A copyright
		A patent
		A franchise
		Land