chapter 11 tfs

¡Supera tus tareas y exámenes ahora con Quizwiz!

Research and development costs are reported as intangible assets if they will provide economic benefits in future years.

F

Research and development costs that result in patents may be capitalized to the extent of the fair value of the patent.

F

The cost of a purchased patent should be amortized over the remaining legal life of the patent.

F

The rules used to account for impairments of limited-life intangible assets are different from the rules used to account for impairments of plant and equipment

F

The same recoverability test that is used for impairments of property, plant, and equipment is used for impairments of indefinite-life intangibles.

F

Trademarks and tradenames are marketing-related intangible assets with limited lives.

F

GAAP requires start-up costs and initial operating losses during the early years to be capitalized.

F.

Limited-life intangibles are amortized by systematic charges to expense over their useful lives.

T

Material, labor, and overhead costs incurred in developing a new product are to be expensed as these are development costs.

T

Research and development expenditures are expensed as incurred because of the uncertainty regarding their future cash flows.

T

Some intangible assets are not required to be amortized.

T

The cost of acquiring a customer list from another company is recorded as an intangible asset.

T

Internally generated intangible assets are initially recorded at fair value.

F

Internally generated goodwill is not capitalized in the accounts.

T

Periodic alterations to existing products are an example of research and development costs.

F

Amortization expense is generally recorded with a credit to the Accumulated Amortization account.

F

Amortization of limited-life intangible assets should not be affected by expected residual values

F

Contra accounts are generally reported for intangible assets in a manner similar to accumulated depreciation and property, plant, and equipment.

F

Examples of customer-related intangible assets include brands, customer lists, and production backlogs

F

Goodwill is considered a master valuation account because it measures the value of specifically identifiable intangible assets.

F

If a company develops a trademark, it should expense the costs related to attorney fees, registration fees, and design costs.

F

If the fair value of an impaired asset that is in use recovers after impairment has been recognized, the impairment may be reversed in a subsequent period.

F

Intangible assets derive their value from the right (claim) to receive cash in the future.

F

Internally generated goodwill associated with a business may be recorded as an asset when a firm offer to purchase that business unit has been received

F

After an impairment loss is recorded for a limited-life intangible asset, the carrying amount becomes the basis for the impaired asset and is used to calculate amortization in future periods.

T

All intangibles are subject to periodic consideration of impairment with corresponding potential write-downs.

T

Goodwill is recognized as an asset when it is purchased in an arm's length transaction.

T

If a new patent is acquired through modification of an existing patent, the remaining book value of the original patent may be amortized over the life of the new patent.

T

If the fair value of an unlimited life intangible other than goodwill is less than its book value, an impairment loss must be recognized.

T

If the value of a patent is impaired because demand drops for the patented product, it should be written down or written off in the period of the decline in demand.

T

In 2021, Grecko Company recorded an impairment on one of its patents. If the fair value of a patent recovers in 2022, Grecko can record recovery of impairment if the patent is held for sale.

T

In a business combination, a company assigns the cost, where possible, to the identifiable tangible and intangible net assets, with the remainder recorded as goodwill.

T

In a business combination, the acquiring company may recognize some assets and liabilities not previously recognized by the acquired company.

T


Conjuntos de estudio relacionados

CISSP - Sybex Study Guide - Ch. 6 Cryptography and Symmetric Key Algorithms

View Set

CH 19 Cardiovascular system: Blood vessels

View Set

PSYC 1001 General Psychology Ciccarelli White Fourth Edition Ch. 1-15, some redundancy

View Set

Clinical Decision Making, Communication, Evidence-Based Practice NUR 111 Study Guide Test 1

View Set

PET VOCABULARY LIST A-P ENGLISH-SPANISH TCEC Linares

View Set