Question 1

A loss on impairment of an intangible asset is the difference between the asset's

Accepted Answer

A) carrying amount and the expected future net cash flows. 
B) carrying amount and its recoverable amount. 
C) recoverable amount and the expected future net cash flows. 
D) book value and its fair value. 
A) carrying amount and the expected future net cash flows. 
B) carrying amount and its recoverable amount. 
C) recoverable amount and the expected future net cash flows. 
D) book value and its fair value.

Question 2

A company acquires a patent for a drug with a remaining legal and useful life of six years on January 1, 2009 for $1,800,000.The company uses straight-line amortization for patents.On January 2, 2011, a new patent is received for a timed-release version of the same drug.The new patent has a legal and useful life of twenty years.The least amount of amortization that could be recorded in 2011 is

Accepted Answer

A) $300,000. 
B) $ 60,000. 
C) $ 81,818. 
D) $ 69,000. 
A) $300,000. 
B) $ 60,000. 
C) $ 81,818. 
D) $ 69,000.

Question 3

Research and development costs are recorded as an intangible asset if it is felt they will provide economic benefits in future years.

Accepted Answer

A) True 
 B)False

Question 4

Goodwill may be recorded when:

Accepted Answer

A) it is identified within a company. 
B) one company acquires another in a business combination. 
C) the fair value of a company's assets exceeds their cost. 
D) a company has exceptional customer relations. 
A) it is identified within a company. 
B) one company acquires another in a business combination. 
C) the fair value of a company's assets exceeds their cost. 
D) a company has exceptional customer relations.

Question 5

Under current accounting practice, intangible assets are classified as

Accepted Answer

A) amortizable or unamortizable. 
B) limited-life or indefinite-life. 
C) specifically identifiable or goodwill-type. 
D) legally restricted or goodwill-type. 
A) amortizable or unamortizable. 
B) limited-life or indefinite-life. 
C) specifically identifiable or goodwill-type. 
D) legally restricted or goodwill-type.

Question 6

In 2010, Edwards Corporation incurred research and development costs as follows:   These costs relate to a product that will be marketed in 2011.It is estimated that these costs will be recouped by December 31, 2013, but its process has not achieved economic viability.The equipment has no alternative future use.What is the amount of research and development costs that should be expensed in 2010?

Accepted Answer

A) $0. 
B) $210,000. 
C) $270,000. 
D) $360,000. 
A) $0. 
B) $210,000. 
C) $270,000. 
D) $360,000.

A loss on impairment of an intangible asset is the difference between the asset's

Research and development costs are recorded as an intangible asset if it is felt they will provide economic benefits in future years.

Goodwill may be recorded when:

Under current accounting practice, intangible assets are classified as

Financial Accounting and Accounting Standards

Conceptual Framework Underlying Financial Accounting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Presentation and Disclosure in Financial Reporting

Filters

Exam 12: Intangible Assets

A loss on impairment of an intangible asset is the difference between the asset's

Research and development costs are recorded as an intangible asset if it is felt they will provide economic benefits in future years.

Goodwill may be recorded when:

Under current accounting practice, intangible assets are classified as

Financial Accounting and Accounting Standards

Conceptual Framework Underlying Financial Accounting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Presentation and Disclosure in Financial Reporting

Filters