Exam 10: Long-Lived Tangible and Intangible Assets

IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction.The disposal group notion of IFRS envisions a larger unit than the component notion of U.S.GAAP.In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a discontinued operation, it aggregates the assets and liabilities of that unit on the balance sheet into four groups. Which of the following is not one of the groups?

Which of the following is not true regarding expenditures for improvements?

Which of the following is/are not true regarding the fair value of long-lived assets?

An expenditure qualifies as an asset if it has which of the following characteristics?

Repairs and maintenance do not include

Goodwill that was internally developed should be amortized over a life not to exceed

The economic value of a tangible asset may decline below its book value but an impairment loss would not be recognized when the

An expenditure qualifies as a(n) _____ if it has the following characteristics: 1.It embodies a probable future benefit. 2)A particular entity can obtain the benefit and control others' access to it. 3)The transaction or other event giving rise to the entity's right to, or control of, the benefit has already occurred. 4)The fair value of the item at the time of initial recognition can be measured with sufficient reliability.

For buildings, common depreciation practice assumes a zero salvage value on the assumption that the costs a firm will incur in tearing down the building will approximate the sales value of the scrap materials recovered.

Under U.S.GAAP and IFRS reporting standards, management assesses the firm's assets for impairment at each reporting date by determining if impairment indicators are present.Impairment indicators do not include

When a firm constructs its own buildings or equipment, what costs are capitalized?

Which of the following is/are true regarding measuring changes in the fair values of long-lived assets?

Which of the following is/are true regarding long-lived assets with a finite life?

The entry to record amortization of a customer list in the amount of $4,500 is as follows:

A firm acquires a car for company business.The car costs $12,000, has a useful life of 5 years, and a salvage value of $2,000.The straight-line method of depreciation is used.What is the gain or loss on retirement if the car is sold for $5,000 after three years of use?

Firms must expense when incurred the transactions cost of acquiring a firm in a business combination under both U.S.GAAP and IFRS.

The amount of goodwill represents the excess of the total purchase price over the fair value of identifiable tangible and intangible net assets.

Depreciation and amortization affect both net income reported in the financial statements and taxable income on tax returns. Which of the following is /are true?

The capitalization of interest in the acquisition cost of assets during construction delays expense recognition from the time periods of borrowing to the time periods of using the asset.

The amortization of a customer list are