The sale of an asset at a loss occurs when none of the above the selling price is less than the book value of the asset the selling price is less than the estimated salvage value the selling price is less than the cost of the asset If an asset is discarded, scrapped, or retired, the selling price is deemed to be equal to the book value of the asset zero equal to the cost of the asset equal to the estimated salvage value of the asset Which of the following assets are considered intangible assets? Select all that apply. Inventory Equipment Patent Land Buildings Copyrights Trademarks Goodwill Intangible assets with a limited life are amortized over their legal life their estimated useful life none of these is correct the lower of their legal life or their estimated useful life The journal entry to record amortization expense on a patent is: Patent Amortization Expense Amortization Expense Patent Accumulated Amortization Amortization Expense Amortization Expense Accumulated Amortization Which of the following is correct? Research and development costs are depreciated over their estimated useful life Research and development costs are expensed immediately Research and development costs are amortized over their estimated useful life None of the answers are correct Goodwill is recorded O only when an entire business is purchased and the price paid exceeds the fair market value of all of the assets never when the company receives excellent press coverage when the company produces a new, unique product Return on assets is computed as net income / average total assets average total assets / net income net income / accumulated depreciation O total Property, Plant, and Equipment / accumulated depreciation The Asset Turnover Ratio is computed as Average Total Assets / Net Sales Accumulated Depreciation / Depreciation Expense Net Sales / Average Total Assets Average Total Assets / Accumulated Depreciation Liabilities are classified on the Balance Sheet as Current and Past Due Short-Term and Long-Term None of the answers is correct Current and Long-Term Current liabilities are generally due within 1 year or operating cycle, whichever is longer, of the Balance Sheet date True False Sales taxes collected from customers are a reported as an expense on the Income Statement True False The journal entry to record a cash sale which includes the collection of sales taxes is Cash Sales Tax Expense Sales Revenue Cash Sales Revenue Sales Taxes Payable Sales Tax Expense Sales Revenue Cash Sales Tax Expense Unearned Revenue is reported on the Income Statement True False When cash is collected in advance from a customer, the proper journal entry is Cash Unearned Revenue Unearned Revenue Service Revenue Cash Sales Revenue Service Revenue Cash Unearned Revenue Cash Payroll taxes withheld from an employee's paycheck are an expense to the employer. True False Which of the following are true regarding Notes Payable? Select all that apply. Flexible maturity date Fixed maturity date No written documents required Stronger legal claim for creditor compared to accounts receivables | Receipt of interest