Question 1

An intangible asset is one that has a physical existence.

Accepted Answer

A) True 
 B)False

Question 2

NBC Company purchased a patent from ABC for $144,000.At the time of purchase the patent had been in existence for 10 years.What is the first year's amortization?

Accepted Answer

A) $7,200 
B) $18,000 
C) $12,000 
D) $14,400 
A) $7,200 
B) $18,000 
C) $12,000 
D) $14,400

Question 3

You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting.The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years).

Accepted Answer

The answer of You have been hired by a high-growth...

Question 4

Expenditures made to extend an asset's life are deemed revenue expenditures.

Accepted Answer

A) True 
 B)False

Question 5

Depletion is the process of transferring the cost of intangible assets to an expense account.

Accepted Answer

A) True 
 B)False

Question 6

If a company sells a fixed asset where the book value is less than the cash received,a gain must be recognized.

Accepted Answer

A) True 
 B)False

An intangible asset is one that has a physical existence.

NBC Company purchased a patent from ABC for $144,000.At the time of purchase the patent had been in existence for 10 years.What is the first year's amortization?

You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting.The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years).

Expenditures made to extend an asset's life are deemed revenue expenditures.

Depletion is the process of transferring the cost of intangible assets to an expense account.

If a company sells a fixed asset where the book value is less than the cash received,a gain must be recognized.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 7: Fixed Assets and Intangible Assets

An intangible asset is one that has a physical existence.

NBC Company purchased a patent from ABC for $144,000.At the time of purchase the patent had been in existence for 10 years.What is the first year's amortization?

You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting.The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years).

Expenditures made to extend an asset's life are deemed revenue expenditures.

Depletion is the process of transferring the cost of intangible assets to an expense account.

If a company sells a fixed asset where the book value is less than the cash received,a gain must be recognized.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters