Question 1

Development costs may be capitalized if

Accepted Answer

A) the resulting product or service is technically feasible. 
B) the entity has sufficient resources to complete the project. 
C) all of these (all of these criteria, in addition to others, must be met in order for development costs to be capitalized). 
D) the entity intends to use or sell the resulting product or service. 
A) the resulting product or service is technically feasible. 
B) the entity has sufficient resources to complete the project. 
C) all of these (all of these criteria, in addition to others, must be met in order for development costs to be capitalized). 
D) the entity intends to use or sell the resulting product or service.

Question 2

The proper accounting for the costs incurred in creating computer software products that are to be sold, leased, or otherwise marketed to external parties, is to

Accepted Answer

A) capitalize all costs until the software is sold to external parties. 
B) charge research and development expense when incurred until technological feasibility has been established for the product. 
C) charge research and development expense only if the computer software has alternative future uses. 
D) capitalize all costs as incurred until a detailed program design or working model is created. 
A) capitalize all costs until the software is sold to external parties. 
B) charge research and development expense when incurred until technological feasibility has been established for the product. 
C) charge research and development expense only if the computer software has alternative future uses. 
D) capitalize all costs as incurred until a detailed program design or working model is created.

Question 3

Which of the following costs of goodwill should be capitalized?

Accepted Answer

The answer of Which of the following costs of goodwill...

Question 4

Under ASPE, which of the following statements best describes when goodwill should be tested for impairment?

Accepted Answer

A) Goodwill should be tested for impairment when events or changes in circumstances indicate that impairment may have occurred. 
B) Goodwill should be tested annually for impairment regardless of the circumstances. 
C) Goodwill should be tested for impairment annually and whenever events or changes in circumstance indicate that impairment may have occurred. 
D) Goodwill should only be tested for impairment when the company follows a policy to amortize its goodwill. 
A) Goodwill should be tested for impairment when events or changes in circumstances indicate that impairment may have occurred. 
B) Goodwill should be tested annually for impairment regardless of the circumstances. 
C) Goodwill should be tested for impairment annually and whenever events or changes in circumstance indicate that impairment may have occurred. 
D) Goodwill should only be tested for impairment when the company follows a policy to amortize its goodwill.

Question 5

Which of the following is correct regarding the rational entity impairment model?

Accepted Answer

A) For limited-life intangibles, IFRS requires that the rational entity impairment model be applied. 
B) For limited-life intangibles, ASPE requires that the rational entity impairment model be applied. 
C) For indefinite-life intangibles, ASPE requires that the rational entity impairment model be applied. 
D) Neither ASPE nor IFRS allow the use of the rational entity impairment model. 
A) For limited-life intangibles, IFRS requires that the rational entity impairment model be applied. 
B) For limited-life intangibles, ASPE requires that the rational entity impairment model be applied. 
C) For indefinite-life intangibles, ASPE requires that the rational entity impairment model be applied. 
D) Neither ASPE nor IFRS allow the use of the rational entity impairment model.

Question 6

On January 2, 2017, Silver Corp.bought a trademark from Lake Inc.for $150,000.An independent research company estimated that the remaining useful life of the trademark was 30 years.At this time, the trademark's net book value in Lake's records was $210,000.Because the trademark had a demonstrated limited life beyond 20 years, Silver decided to amortize the trademark over the maximum period, straight-line with no residual.In Silver's (calendar)2017 income statement, what amount should be reported as amortization expense for this trademark?

Accepted Answer

A) $7,500 
B) $7,000 
C) $6,000 
D) $5,000 
A) $7,500 
B) $7,000 
C) $6,000 
D) $5,000

Question 7

An impairment of an identifiable intangible asset arises when its carrying amount exceeds the

Accepted Answer

A) present value of the expected future net cash flows. 
B) expected future economic benefits. 
C) asset's cost. 
D) asset's fair value. 
A) present value of the expected future net cash flows. 
B) expected future economic benefits. 
C) asset's cost. 
D) asset's fair value.

Question 8

Which of the following best describes goodwill?

Accepted Answer

A) internal value generated by way of a brand image 
B) the excess of fair value transferred to acquire a business over fair value amounts assigned to identifiable assets 
C) internal value generated by way of a company's charitable activities and philanthropic acts 
D) a company's intentions to impact the community and environment in a favourable way 
A) internal value generated by way of a brand image 
B) the excess of fair value transferred to acquire a business over fair value amounts assigned to identifiable assets 
C) internal value generated by way of a company's charitable activities and philanthropic acts 
D) a company's intentions to impact the community and environment in a favourable way

Question 9

Goodwill was purchased when a business was acquired.When it is determined that the goodwill is impaired, the credit is usually made to

Accepted Answer

A) the Goodwill account. 
B) an Accumulated Impairment Loss account. 
C) a Deferred Credit account. 
D) a Shareholders' Equity account. 
A) the Goodwill account. 
B) an Accumulated Impairment Loss account. 
C) a Deferred Credit account. 
D) a Shareholders' Equity account.

Question 10

Which of the following statements best describes when previously recognized goodwill impairment may be reversed?

Accepted Answer

A) Reversals are permitted under both ASPE and IFRS. 
B) Reversals are permitted under ASPE but not IFRS. 
C) Reversals are permitted under IFRS but not ASPE. 
D) Reversals are not permitted under either IFRS or ASPE. 
A) Reversals are permitted under both ASPE and IFRS. 
B) Reversals are permitted under ASPE but not IFRS. 
C) Reversals are permitted under IFRS but not ASPE. 
D) Reversals are not permitted under either IFRS or ASPE.

Question 11

All of the following are specifically identifiable intangible assets EXCEPT

Accepted Answer

A) patents. 
B) trademarks. 
C) goodwill. 
D) copyrights. 
A) patents. 
B) trademarks. 
C) goodwill. 
D) copyrights.

Question 12

The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be

Accepted Answer

A) expensed in the current period. 
B) amortized over the legal life of the purchased patent. 
C) added to factory overhead and allocated to production of the purchaser's product. 
D) amortized over the remaining estimated life of the original patent covering the product whose market would have been impaired by competition from the newly patented product. 
A) expensed in the current period. 
B) amortized over the legal life of the purchased patent. 
C) added to factory overhead and allocated to production of the purchaser's product. 
D) amortized over the remaining estimated life of the original patent covering the product whose market would have been impaired by competition from the newly patented product.

Development costs may be capitalized if

The proper accounting for the costs incurred in creating computer software products that are to be sold, leased, or otherwise marketed to external parties, is to

Which of the following costs of goodwill should be capitalized?

Under ASPE, which of the following statements best describes when goodwill should be tested for impairment?

Which of the following is correct regarding the rational entity impairment model?

An impairment of an identifiable intangible asset arises when its carrying amount exceeds the

Which of the following best describes goodwill?

Goodwill was purchased when a business was acquired.When it is determined that the goodwill is impaired, the credit is usually made to

Which of the following statements best describes when previously recognized goodwill impairment may be reversed?

All of the following are specifically identifiable intangible assets EXCEPT

The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be

The Canadian Financial Reporting Environment

Conceptual Framework Underlying Financial Reporting

The Accounting Information System and Measurement Issues

Reporting Financial Performance

Financial Position and Cash Flows

Revenue Recognition

Cash and Receivables

Inventory

Investments

Property, Plant, and Equipment: Accounting Model Basics

Depreciation, Impairment, and Disposition

Non-Financial Andcurrent Liabilities

Long-Term Financial Liabilities

Shareholders Equity

Complex Financial Instruments

Earnings Per Share

Income Taxes

Pensions and Other Employee Future Benefits

Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Other Measurement and Disclosure Issues

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Exam 12: Intangible Assets and Goodwill

Development costs may be capitalized if

The proper accounting for the costs incurred in creating computer software products that are to be sold, leased, or otherwise marketed to external parties, is to

Which of the following costs of goodwill should be capitalized?

Under ASPE, which of the following statements best describes when goodwill should be tested for impairment?

Which of the following is correct regarding the rational entity impairment model?

An impairment of an identifiable intangible asset arises when its carrying amount exceeds the

Which of the following best describes goodwill?

Goodwill was purchased when a business was acquired.When it is determined that the goodwill is impaired, the credit is usually made to

Which of the following statements best describes when previously recognized goodwill impairment may be reversed?

All of the following are specifically identifiable intangible assets EXCEPT

The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be

The Canadian Financial Reporting Environment

Conceptual Framework Underlying Financial Reporting

The Accounting Information System and Measurement Issues

Reporting Financial Performance

Financial Position and Cash Flows

Revenue Recognition

Cash and Receivables

Inventory

Investments

Property, Plant, and Equipment: Accounting Model Basics

Depreciation, Impairment, and Disposition

Non-Financial Andcurrent Liabilities

Long-Term Financial Liabilities

Shareholders Equity

Complex Financial Instruments

Earnings Per Share

Income Taxes

Pensions and Other Employee Future Benefits

Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Other Measurement and Disclosure Issues

Filters