CHAPTER 12
INTANGIBLE ASSETS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Characteristics of intangible assets.
F 2. Recording internally generated inta
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CHAPTER 12
INTANGIBLE ASSETS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Characteristics of intangible assets.
F 2. Recording internally generated intangibles.
T 3. Amortizing limited-life intangibles.
F 4. Amortization of limited-life intangible assets.
T 5. Amortization of limited-life intangibles.
F 6. Capitalizing trademark costs.
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.
F 11. Goodwill as master valuation account.
T 12. Internally generated goodwill.
F 13. Recording internally generated goodwill.
T 14. Impairment of intangibles.
T 15. Recognition of impairment loss.
T 16. Impaired asset and recoverable amount.
F 17. Impairment of intangible assets.
F 18. Recovery of impairment loss.
F 19. Impairment of intangibles.
F 20. Reporting intangible assets.
F 21. Treatment of research and development costs.
F 22. Recording research and development costs.
F 23. Start-up costs and initial operating losses.
T 24. Research and development costs.
F 25. Example of research and development costs.
MULTIPLE CHOICE—Conceptual
Answer No. Description
b 26 Characteristics of intangible assets.
c 27 Characteristics of intangible assets.
a 28 Characteristics of intangible assets.
c 29. Accounting for internally-created intangibles.
a 30. Treatment of internally generated costs.
b 31. Amortization methods for intangible assets.
d 32. Cost of intangible asset.
d 33. Factors in determining useful life.
b
S34. Classifying intangible assets.
c 35. Impairment of intangibles.
a 36. Determining intangible asset useful life.
b 37. Amortization of intangibles.
d 38. Patent amortization.
c 39. Treatment of patent legal defense costs.
Test Bank for Intermediate Accounting, Sixteenth Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
d 40. Legal fees associated with patent infringement.
b 41. Identification of intangible assets.
c 42. Amortization of intangible assets.
a 43. Entry to record patent amortization.
c 44. Capitalizing trademark costs.
c 45. Contract-related intangible assets.
a 46. Definition of copyrights.
b 47. Customer-related intangible assets.
d 48. Technology-related intangible assets.
c 49. Classifying intangible assets.
a 50. Classifying intangible assets.
c 51. Composition of goodwill.
b 52. When to record goodwill.
d 53. Intangibles during acquisition of company.
c 54. Separability of goodwill.
b 55. Goodwill definition.
a 56. Reporting of "bargain purchase."
d 57. Accounting for goodwill.
a 58. Recording goodwill.
b 59. Definition of a bargain purchase.
b 60. Impairment of intangible asset.
d 61. Recoverability test.
c
S62. Impairment test for indefinite-life intangibles.
b
P63. Carrying value of an intangible.
a 64. Reporting of Goodwill
d 65. Intangible asset disclosure.
d 66. Trade name amortization.
d 67. Patent amortization.
d 68. Reporting intangibles.
b 69. Amortization expense.
d 70. Reporting goodwill.
a 71. Classification of R & D costs.
c 72. Costs excluded from R & D expense.
b 73. Depreciation of laboratory building used in R & D.
a 74. Operating losses during start-up period.
d
P75. Accounting for organization costs.
a
S76. Classification of R & D expense.
d 77. Classification of R & D expense.
a 78. Capitalization of R & D costs.
b 79. R & D accounting principles.
d 80. Expensing R & D costs.
c
P81. Identify R & D costs.
c 82. Successful defense of a patent.
d 83. R & D costs.
d 84. Identify a non-R & D cost.
P
These questions also appear in the Problem-Solving Survival Guide.
S
These questions also appear in the Study Guide.
12 - 2
Intangible Assets
MULTIPLE CHOICE—Computational
Answer No. Description
d 85. Valuation of patent.
d 86. Valuation of patent.
c 87. Valuation of patent.
d 88. Basket purchase of patents.
c 89. Intangible asset amortization.
c 90. Intangible asset amortization.
b 91. Computing patent amortization expense.
b 92. Computing patent amortization expense.
b 93. Computing patent amortization expense.
c 94. Calculate total intangible assets.
b 95. Determine amount of worthless patent to be written off.
b 96. Calculate patent amortization.
a 97. Calculate trademark amortization.
b 98. Calculate patent amortization.
c 99. Calculate goodwill amount.
c 100. Calculate goodwill amount.
d 101. Calculate goodwill amount.
a 102. Calculate goodwill impairment.
b 103. Proper accounting when fair value of net assets acquired exceeds cost.
b 104. Fair value of identifiable net assets.
c 105. Fair value of identifiable net assets.
b 106. Calculate impairment loss.
c 107. Calculate patent carrying amount.
d 108. Calculate patent carrying amount.
b 109. Calculate loss on impairment of goodwill.
b 110. Calculate loss on impairment of goodwill.
d 111. Intangible asset total.
c 112. Calculate R & D expense.
c 113. Calculate R & D expense.
a 114. Calculate R & D expense.
a 115. Calculate R & D expense.
c 116. Calculate R & D expense
12 - 3
Test Bank for Intermediate Accounting, Sixteenth Edition
MULTIPLE CHOICE—CPA Adapted
Answer No. Description
a 117. Determine capitalized patent costs.
c 118. Valuation of patent exchanged for common stock.
d 119. Valuation of patent exchanged for treasury stock.
c 120. Valuation and amortization of a patent.
c 121. Amortization of a patent.
d 122. Amortization of a copyright.
c 123. Capitalization of legal fees.
a 124. Amortization of goodwill.
c 125. Calculate R & D expense.
a 126. Determine R & D expense.
BRIEF EXERCISES
Item Description
BE12-127 Amortization of patent.
BE12-128 Calculate patent carrying amount.
BE12-129 Calculate goodwill amount.
BE12-130 Impairment of patent.
BE12-131 Goodwill impairment.
EXE
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