Question 1

Which of the following is NOT an intangible asset?

Group of answer choices

A. Patents

B. Trademarks

C. Trade secrets

D. Computers

E. Brand names

Question 2

What does goodwill represent (in accounting)?

Group of answer choices

A. Positive feelings customers have about a company

B. Costs associated with a companys environmental and social activities

C. The total amount a business pays to acquire another business

D. A premium a business pays to acquire another business

E. Donations made by a company to charitable causes

Question 3

Ray Walston Pharmaceuticals spent $3 million to develop a new prescription drug$2 million during 2020 and $1 million during 2021. Walston was awarded a patent for the drug during 2021, and Walston believed the patent was worth $6 million. What amount should Walston record as a patent asset on its 2021 balance sheet?

Group of answer choices

A. $0

B. $1 million

C. $2 million

D. $3 million

E. $6 million

Question 4

In December 2020, John Keating Pharmaceuticals purchased a patent from its competitor, Veronica Vaughn Drug Co., for $300,000. Vaughn had previously spent $500,000 on R&D related to this patent, and had earned $400,000 by selling the patented drug, prior to the sale of the patent to Keating. What amount should Keating record as a patent asset on its 2020 balance sheet?

Group of answer choices

A. $0

B. $300,000

C. $400,000

D. $500,000

Question 5

Which types of intangible assets are amortized over their useful lives?

Group of answer choices

A. Finite-lived intangible assets (e.g., patents)

B. Indefinite-lived intangible assets (e.g., brand names)

C. Goodwill

D. All of the above