chapter 11 tfs

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

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


संबंधित स्टडी सेट्स

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