Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. Goodwill Amortization Copyright Patent Impairment ✓[Choose] Its legal life and its useful economic lie can differ greatly. Systematic and rational allocation of the cost of an intangible asset over its useful economic life. Only arises from a business combination. Has a legal life of twenty years. The condition in which the future recoverability of an asset is in question. [Choose] [Choose ] [Choose ]

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. Goodwill Amortization Copyright Patent Impairment ✓[Choose] Its legal life and its useful economic lie can differ greatly. Systematic and rational allocation of the cost of an intangible asset over its useful economic life. Only arises from a business combination. Has a legal life of twenty years. The condition in which the future recoverability of an asset is in question. [Choose] [Choose ] [Choose ]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(33) Amortization expense is recorded for: A. A franchise established with a contract that allows for unlimited extensions. B. Intangible assets with a finite life. C. Intangible assets with an indefinite life. D. Goodwill
Which of the following statements concerning intangibles is true? a. a copyright should be considered an intangible with an indefinite lifeb. organization costs must be expensed as incurredc. a patent should be amortized over the shorter of the inventor’s life or its economic lifed. the registration of a trademark or tradename lasts for 20 years and is nonrenewable
1.)For an asset to be held for sale,: 1. It must be available for immediate sale in its present condition 2. Its sale must be highly probable 3. The management must be committed to a plan to sell the asset 4. The management must have an active program to locate a buyer 5. The asset must be actively marketed for sale 6. The sale should be expected to be completed within one year from the date of classification 7. The asset should be fully depreciated a. 1 to 6 only b. 1 to 4 only c. 1 to 5 only d. 1 to 7 all 2.)Which of the following is not an objective of PAS 10? a. To prescribe when an entity should adjust its financial statements for events after the reporting period b. To prescribe how an entity should distinguish favorable events from unfavorable c. To prescribe the disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting period d. To require an entity should not prepare its financial…
12. How is the matching principle related to the recording of depreciation on tangible operational assets? A. The matching principle requires a company to use the same depreciation. B. Once a particular depreciation method is adopted for a particular asset, the owner must continue to use the same method. C. The accountant who calculates the depreciation may assume that the company will continue in business as long as the estimated useful life of the asset. D. A portion of the cost of the asset should be allocated as an expense for the periods in which the asset helps the business to earn revenue.
A computer software purchased as an integral part of a computer-controlled machine tool that cannot operate without the specific software shall be treated as O Property, plant and equipment O Expense O Intangible asset O Inventory Which cost associated with a trademark should not be capitalized? * Consulting fee O Research and development fee O Design cost O Attorney fee An entity is performing an annual test of the impairment of goodwill for a cash-generating unit. It has determined that the fair value of the unit exceeds the carrying amount. Which statement is true concerning the test of impairment? * O Goodwill should be retested at the entity level. The assets and liabilities should be valued to determine if there has been an impairment of goodwill. O Goodwill should be written down as impaired. O Impairment is not indicated and no additional analysis is necessary. Goodwill should be tested periodically for impairment O At the subsidiary level O At the industry segment level O At…
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The fair value of a patent on 01/01/2020 was RO. 5200. The patent was purchased on 01/01/2015 for RO.10,000 with an estimated useful life of 10 years with no salvage value. If the company follows straight-line amortization methods on all its intangible assets, how much amount to be charged to asset account (Patent account)a.A credit of RO. 5000b.A debit of RO. 200c.A debit of RO. 5000d.A credit of RO. 200
Ali Brothers acquired an intangible assets and predicted that its useful life is indefinite. Which of the following statement is the correct description of amortization? O a. The acquired intangible assets by Ali Brothers can be amortized as per IAS 38. O b. The acquired intangible assets by Ali Brothers cannot be amortized as per IAS 38. O C. As per IAS 38 an intangible asset with indefinite life is tested annually for impairment not amortised. O d. The acquired intangible assets by Ali Brothers can be depreciated as per IAS 16.
Which of the following statements is false? A.For a self constructed asset, capitalized interest should never exceed actual interest cost. B.A loss on exchange will always be recognized regardless of commercial substance. C.The cost to build an addition to an existing building should be expensed immediately. D.If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered.
lowing appropr right 1. Goodwill 2. Amount realized 3. Fair market value 4. Adjusted basis 5. Holding period a. The ability of a business to generate income in excess of a normal rate on assets due to superior managerial skills, market position, new product technology, etc. b. The amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of the relevant facts. c. It is crucial in determining whether gain or loss from the sale or exchange of a capital asset is long term or short term. d. This amount is the sum of the cash and the fair market value of any property or services received, plus any related debt assumed by the buyer. e. The cost or other basis of property reduced by deprecation (cost recovery) allowed or allowable and increased by capital improvements. Match the following terms in the left column with the appropriate definition from the right column. 1.…