Test Bank Chapter 12 Intangible Assets.

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Test Bank Chapter 12 Intangible Assets. CHAPTER 12 INTANGIBLE ASSETS IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Desc ... ription F 1. Characteristics of intangible assets. F 2. Internally created intangibles. F 3. Recording internally generated intangibles. F 4. Amortization of limited-life intangible assets. T 5. Amortization of intangible assets. T 6. Amortizing limited-life intangibles. T 7. Accounting for a customer list. F 8. Amortization of patents. T 9. Modification of an existing patent. T 10. Basic concept of goodwill. T 11. Internally generated goodwill. F 12. Recording internally generated goodwill. T 13. Impairment of intangibles. T 14. Recognition of impairment loss. F 15. Recovery of impairment loss. F 16. Impairment of intangibles. F 17. Example of research and development costs. F 18. Capitalizing research and development costs. F 19. Recording research and development costs. F 20. Reporting intangible assets. MULTIPLE CHOICE—Conceptual Description b 21 Characteristics of intangible assets. c 22 Characteristics of intangible assets. a 23 Characteristics of intangible assets. c 24. Accounting for internally-created intangibles. a 25. Research and development costs. b 26. Amortization methods for intangible assets. d 27. Cost of intangible asset. d 28. Factors in determining useful life. b S29. Classifying intangible assets. c 30. Impairment of intangibles. a 31. Determining intangible asset useful life. b 32. Amortization of intangibles. d 33. Patent amortization. c 34. Patent amortization. d 35. Legal fees associated with patent infringement. b 36. Identification of intangible assets. c 37. Amortization of intangible assets. a 38. Entry to record patent amortization. c S39. Trademark costs capitalized. MULTIPLE CHOICE—Conceptual (cont.) Description c 40. Composition of goodwill. b 41. When to record goodwill. d 42. Intangibles during acquisition of company. c 43. Seperability of goodwill. b S44. Goodwill as master valuation account. a 45. Reporting of "negative goodwill." d 46. Accounting for goodwill. a 47. Recording goodwill. b 48. Impairment of intangible asset. d 49. Recoverability test. c S50. Impairment test for indefinite-life intangibles. b P51. Accounting for organization costs. a 52. Capitalization of certain R & D costs. d 53. Accounting principle for R & D expenditures. d 54. Accounting for R & D costs. d 55. Classification of R & D expense. d 56. Costs to defend a patent. b 57. Purpose of R & D costs. d 58. Classification of R & D costs. d 59. Classification of R & D costs. c 60. Costs excluded from R & D expense. b 61. Depreciation of laboratory building used in R & D. a 62. Operating losses during start-up period. d P63. Accounting for organization costs. a S64. Classification of R & D expense. a 65. Reporting goodwill. b 66. Intangible asset disclosure. d 67. Expense classification. c P68. Reporting patent amortization. c 69. Reporting intangibles. d 70. Reporting expenses and losses. d 71. Reporting expenses and losses. b 72. Cost of computer software. d 73. Cost of computer software. c 74. Amortization of computer software costs. d 75. Amortization of computer software costs. P These questions also appear in the Problem-Solving Survival Guide. S These questions also appear in the Study Guide. * This topic is dealt with in an Appendix to the chapter. MULTIPLE CHOICE—Computational Description d 76. Valuation of patent. d 77. Valuation of patent. c 78. Valuation of patent. d 79. Basket purchase of patents. c 80. Intangible asset amortization. c 81. Intangible asset amortization. b 82. Computing patent amortization expense. b 83. Computing patent amortization expense. b 84. Computing patent amortization expense. c 85. Calculate total intangible assets. b 86. Determine amount of worthless patent to be written off. b 87. Calculate patent amortization. a 88. Calculate trademark amortization. b 89. Calculate patent amortization. c 90. Calculate goodwill amount. c 91. Calculate goodwill amount. d 92. Calculate amount of goodwill. a 93. Calculate goodwill impairment. b 94. Proper accounting when fair value of net assets acquired exceeds cost. b 95. Calculate impairment loss. c 96. Calculate patent carrying value. d 97. Calculate patent carrying value. b 98. Calculate loss on impairment of goodwill. b 99. Calculate loss on impairment of goodwill. d 100. Calculate R & D expense. c 101. Calculate R & D expense. c 102. Calculate R & D expense. a 103. Calculate R & D expense. a 104. Calculate R & D expense. c 105. Reporting intangible assets. c *106. Computing computer software costs. c *107. Computing computer software costs. c *108. Computing computer software costs. a *109. Computing computer software costs. b *110. Computing computer software costs. MULTIPLE CHOICE—CPA Adapted Description a 111. Determine capitalized patent costs. c 112. Valuation of patent exchanged for common stock. d 113. Valuation of patent exchanged for treasury stock. c 114. Valuation and amortization of a patent. c 115. Amortization of a patent. d 116. Amortization of a trademark. c 117. Capitalization of legal fees. a 118. Amortization of goodwill. c 119. Calculate R & D expense. a 120. Determine R & D expense for the year. EXERCISES Item Description E12-121 Essay – characteristics of intangible assets. E12-122 Essay – cost of intangibles. E12-123 Essay – types of intangibles. E12-124 Essay – definition of and accounting for intangibles. E12-125 Essay – stock issued for intangible. E12-126 Essay – costs associated with patents. E12-127 Intangible assets multiple choice. E12-128 Essay – intangible asset amortization. E12-129 Essay – useful life of intangibles. E12-130 Entries for amortization and impairment. E12-131 Essay - Intangible assets theory. E12-132 Identify intangibles. E12-133 Essay – Goodwill and negative goodwill. E12-134 Carrying value of patent. E12-135 Accounting for patent. E12-136 Essay – goodwill. E12-137 Essay – impairment. E12-138 Goodwill impairment. E12-139 Impairment of copyrights. E12-140 Essay – R & D costs. E12-141 Essay – start-up costs. E12-142 Acquisition of tangible and intangible assets. E12-143 Computer software amortization. PROBLEMS Item Description P12-144 Intangible assets. P12-145 Goodwill, impairment. CHAPTER LEARNING OBJECTIVES 1. Describe the characteristics of intangible assets. 2. Identify the costs to include in the initial valuation of intangible assets. 3. Explain the procedure for amortizing intangible assets. 4. Describe the types of intangible assets. 5. Explain the conceptual issues related to goodwill. 6. Describe the accounting procedures for recording goodwill. 7. Explain the accounting issues related to intangible-asset impairments. 8. Identify the conceptual issues related to research and development costs. 9. Describe the accounting for research and development and similar costs. 10. Indicate the presentation of intangible assets and related items. *11. Understand the accounting treatment for computer software costs. SUMMARY OF LEARNING OBJECTIVES BY QUESTIONS Item Type Item Type Item Type Item Type Item Type Item Type Item Type Learning Objective 1 1. TF 21. MC 22. MC 23. MC 121. E 123. E Learning Objective 2 2. TF 24. MC 76. MC 78. MC 122. E 126. E 3. TF 25. MC 77. MC 79. MC 125. E Learning Objective 3 4. TF 26. MC s29. MC 80. MC 128. E 131. E 5. TF 27. MC 30. MC 81. MC 129. E 6. TF 28. MC 32. MC 82. MC 130. E Learning Objective 4 7. TF 35. MC 83. MC 88. MC 114. MC 132. E 144. P 8. TF 36. MC 84. MC 89. MC 115. MC 133. E 9. TF 37. MC 85. MC 111. MC 116. MC 134. E 33. MC 38. MC 86. MC 112. MC&nbs [Show More]

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