. A change in the amortization rate for an intangible asset should be accounted for a. by retrospective restatement. b. by retrospective application. c. on a prospective basis. d. on a current basis.
1. A change in the amortization rate for an intangible asset should be accounted for
a. by retrospective restatement.
b. by retrospective application.
c. on a prospective basis.
d. on a current basis.
2. If a franchise becomes worthless before the end of its useful life, the carrying amount of the franchise account should be charged as
a. franchise expense in the current period.
b. a prior period adjustment.
c. impairment loss.
d. amortization expense.
3. Which of the following is a true statement concerning research and development (R&D) costs?
a. All R&D costs, without exception, must be charged to expense when incurred.
b. R&D costs can only be amortized over a life of 40 years or more.
c. Almost any treatment is acceptable for handling R&D costs.
d. Financial statements must disclose total R&D costs charged to expense in the period
4. Which of the following is an unidentifiable asset?
a.
b. Private-to-private franchise
c. Deferred charges
d. Unearned rent
5. In accordance with the PFRSs, which of the following methods of amortization is normally not recommended for intangible assets?
a. Units of production
b. Declining balance
c. Effective interest method
d. Straight line
6. Which of the following costs related to computer software is capitalized to an intangible asset account?
a. Costs of duplication and reproduction of software for sale
b. Development costs before technological feasibility is achieved
c. Coding and testing costs incurred to establish technological feasibility
d. Coding and testing costs incurred after technological feasibility is established but before the product master is completed
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
