One factor that is not considered in determining theuseful life of an intangible asset is *Residual valueProvision for renewal or extensionExpected action of competitorsLegal lifeWhen a patent is amortized, the credit isusually made to *The patent accountAs accumulated amortization accountAn expense accountAn accumulated depreciation accountA trademark is an example of which categoryof intangible asset?Artistic-relatedContract-basedCustomer-relatedMarket-relatedWhich is a research anddevelopment cost? *Research and development performed under contract for othersDevelopment or improvement of technique and processOffshore oil exploration that is the primary activity of an entityMarket research related to a major product for the entityO O O OO O O O

Hi Student Since there are multiple questions we will answer only first question. If you want…

Answered: One factor that is not considered in…

One factor that is not considered in determining the useful life of an intangible asset is* Residual value O Provision for renewal or extension Expected action of competitors O Legal life

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The book value of a depreciable asset is A. The original cost of the asset. B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: The transfer to expense of the cost of intangible assets attributed to the passage of time or…

A: Introduction:- Assets are mainly classified into two types as follows under:- Tangible assets…

Q: Which of the following amounts would be used in calculating a lessee's right of use asset (ROU)? ) O…

A: A lease is a contractual agreement between two parties, the lessor (owner) and the lessee (user),…

Q: When an intangible asset has a finite life, amortization should be taken over what period of time?…

A: Amortization of intangible assets is a process that the cost of such an asset is written off over…

Q: Costs incurred internally to create intangibles are required to be a. expensed as incurred b.…

A: Intangible Assets: An intangible asset is a kind of asset that does not have a physical…

Q: If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying…

A: Impairment of an asset is required when there are indication that an impairment loss may have…

Q: Impairment of a long-term operating asset occurs when ________. Group of answer choices an asset or…

A: The objective of the question is to identify the correct scenario under which the impairment of a…

Q: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.

A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…

Q: It is the expected selling price of a property when the asset can no longer be used by its owner.…

A: Purchase value of assets is cost of assets purchase plus expenses incurred at the time purchase.

Q: Explain the reasons for the impairment and the justification for treating the write-down as a…

A: When the book value or carrying value of the asset is more than the recoverable value of asset, then…

Q: Explain the historical cost concept as it applies to long-term operational assets. Why is the book…

A: The cost of a fixed asset include every expenses incurred in bringing the asset into present…

Q: Indicate whether each of the following statements is true or false. An impairment loss is the…

A: 1. True, Impairment loss occurs when the asset suffers a depreciation in the Fair value(Expected…

Q: What element must be present when determining if an asset is a depreciating asset? a. An asset…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…

Q: Which of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: In which of the following situations would a cost incurred after an asset’s acquisition be…

A: Asset A resource with a monetary value that is owned or managed by a person, company, or nation in…

Q: In recording amortization of intangible asset, why isn't there an entry such as a credit to…

A: The objective of the question is to understand why the accounting treatment for amortization of…

Q: State which statement is true or false The declining-balance method does not deduct the residual…

A: The declining-balance method does not deduct the residual value in computing the depreciation…

Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…

A: The Answer

Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…

A: An entity should classify an asset held for sale category when the carrying amount of an asset will…

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred…

A: The term "intangible assets" refers to assets without a physical form. Businesses that have made…

Q: Companies that acquire intangible assets under IFRS may only utilize the revaluation model if the…

A: Here is the answer :

Q: Inventor's life is not considered in determining the useful life of an intangible asset. TRUE OR…

A: Intangible assets are those assets which does not have any physical existence. That means…

Q: Same data in I1, but assuming the use of asset revaluation method, how much is the total asset…

A: Revaluation of assets is done to find out their current or present value on the basis of the net…

Q: angible assets have all of the following characteristics, except: O they provide benefits to current…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: If a company purchases a limited-life intangible asset, they _____________ amortize the asset and…

A: Intangible assets are those that are not monetary assets and cannot be touched or seen. These arise…

Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…

Q: A company could change their intention of use for an intangible asset resulting in the asset no…

A: Yes, a company can change its intention of use for an intangible assets, which may impact how it is…

Q: If an intangible asset has its fair value determined in an active market, IFRS permits the use of…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: The book value of a plant asset is equal to Select one: the fair value of the asset at the…

A: The book value of a plant asset is a term used in accounting to describe the net value of an asset.…

Q: The key difference between amortization and depreciation is that amortization charges off the cost…

A: In this question, we are required to determine the key difference between depreciation and…

Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…

A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…

Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…

A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…

Q: What is an intangible asset? Should all intangible assets be subject to amortization? Explain why or…

A: An intangible asset is one that lacks a physical form. Intangible assets include goodwill, brand…

Q: Which of the following is a CORRECT statement about long-term asset impairment? A. Under U.S.…

A: Long-term asset impairment is the process of recognizing a reduction in the value of a long-term…

Q: Indicate whether each of the following statements is true or false. The recoverable amount used to…

A: As per IAS 36,Impairment of assets Recoverable amount is greater of 1. Fair value less cost to sell…

Q: es

A: Lets understand the basics. Intangible asset is a asset which are not having any physical existance.…

Q: A loss on impairment on a limited life intangible asset is the difference between the asset’s…

A: The objective of the question is to identify the correct method for calculating a loss on impairment…

Q: Which of the following statements about the recoverable amount used in the IFRS impairment test of a…

A: The objective of the question is to identify the incorrect statement about the recoverable amount…

Q: Which of the following best describes a depreciation base? The acquisition cost of an asset relative…

A: The deprecitation is a type of non-monetary expense for the company as it does not include any cash…

Q: How do amortization methods differ for intangible assets with finite useful lives versus those with…

A: Intangible assets represent non-physical assets that have value due to the rights or competitive…

Question

One factor that is not considered in determining the
useful life of an intangible asset is *
Residual value
Provision for renewal or extension
Expected action of competitors
Legal life
When a patent is amortized, the credit is
usually made to *
The patent account
As accumulated amortization account
An expense account
An accumulated depreciation account
A trademark is an example of which category
of intangible asset?
Artistic-related
Contract-based
Customer-related
Market-related
Which is a research and
development cost? *
Research and development performed under contract for others
Development or improvement of technique and process
Offshore oil exploration that is the primary activity of an entity
Market research related to a major product for the entity
O O O O
O O O O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following statements is correct with respect to the sale of a depreciable asset? Multiple Choice A gain occurs when the selling price exceeds book value. A sale for a gain results in a decrease in total assets. A sale for a loss results in an increase in total assets. A loss occurs when the selling price is more than book value.
Which of the following statements about depreciation is not true? A. Depreciation does not mirror the actual loss of value over time. B. Depreciation is the allocation of the asset’s cost to expense over the expected years of use. C. If the fair value of the asset increases, depreciation is reversed to reflect the change in value. D. U.S. GAAP requires depreciation methods to be systematic and rational.
Which of the following statements is true? Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.
Which one of the following tangible fixed assets would not normally be ?depreciated Option 1 O Equipment Machinery O Land O Buildings O
what is the ultimate purpose of long-term assets? How should the cost of these assets be allocated over the asset's useful life? Why is depreciation not synonymous with valuation?
Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.
Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and systematic manner. The asset being depreciated remains at historical cost and the accumulated depreciation account serves as a contra account to lower the asset balance on the books. Question: Explain why this lowered value is, or is not, the market value of the asset in any given accounting period. Support your answer with examples explaining your choice.
In the case study of Company XYZ's challenges in accounting for goodwill and intangible assets impairment, which factor poses a risk to the value of intangible assets such as patents and software? A) Technological advancements B) Annual amortization C) Lack of impairment testing D) Economic stability
TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.
Internally generated intangible assets are initially recorded at fair value. O True O False
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset
What is the effective life of an asset? a. The total period of ownership of the asset, including when it is not installed and ready for use.. b. The period prior to the asset being abandoned or scrapped. c. The period that the asset can be used for income-producing purposes. d. All of the above.