Your calculations are not of my interest. To pass this test, you have to select the right answers. I am not going to grade for your calculations.

*Recording deprecation for property, plant and equipment or amortization for intangible assets each period is necessary in accordance with the...

a) going concern principle

b) cost principle

c) matching principle

d) asset valuation principle

*Which one of the following is a FALSE statement for an intangible asset?

a) Research costs cannot be capitalized.

b) An internally-generated brand cannot be capitalized.

c) Development cost associated with a technically feasible project cannot be capitalized.

d) Goodwill (other than the one acquired in a business combination) cannot be capitalized.

*A change in the estimated useful life of an equipment requires

a) a retroactive change in the amount of periodic depreciation recognized in the previous years.

b) that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset

c) that the amount of periodic depreciation be changed in the current year and in future years

d) that income for the current year be increased