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    Trademarks or trade names

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    Question 1

    Trademarks or trade names

    must be renewed every 40 years

    can be considered intangibles with indefinite lives

    are developed internally and thus should not have any related costs capitalized and amortized

    are synonymous with internally developed goodwill

    Question 2

    The factors involved in computing periodic depreciation charges for an asset do not include the

    method of cost allocation

    current value of the asset

    service life

    residual value of the asset

    Question 3

    Which of the following statements concerning internally developed goodwill is true?

    it is a separately identifiable asset

    it is capitalized at its cost

    the costs associated with its development are expensed as incurred

    measuring its value is relatively easy and reliable

    Question 4

    Software production costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways:

    all software production costs should be recorded as R&D expense

    all software production costs should be capitalized

    all software production costs should be recorded in R&D expense until technological feasibility is established

    all software production costs should be recorded in R&D expense until the product is available for general release to customers

    Question 5

    Which one of the following statements is true?

    The activity method of computing depreciation could result in zero depreciation expense in some periods of time.

    If the activity method is in use, residual value should not be subtracted from cost to determine the depreciation base.

    The activity method produces a constant unit cost of depreciation.

    The activity method should be used when the service life of the asset is affected mostly by the passage of time.

    Question 6

    On January 1, 2004, Central Products, Inc., purchased 500 condensers for line use at a cost of $2,000 each. In 2005, two condensers had to be replaced at a cost of $2,500 each. Which one of the following statements is not true?

    in 2005, there will be depreciation expense of $5,000 if the replacement depreciation method is in use

    in 2004, there will not be any depreciation expense recorded if the retirement depreciation method is in use

    in 2005, there will be $4,000 of depreciation expense if the replacement depreciation method is in use

    in 2005, the retirement depreciation method will result in less depreciation expense than the replacement depreciation method

    Question 7

    During 2006, Rockon Company, Inc. incurred $240,000 in legal fees in defending a patent against an infringement with a carrying value of $2,500,000. Rockon¿s lawyers were not successful with the defense of the patent. The legal fees should be

    expensed in 2006 and classified as ordinary expense

    classified as an extraordinary item on the income statement for 2006

    capitalized and amortized over the remaining legal life of the patent

    capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter

    Question 8

    FASB Statement No. 2 requires that research and development costs be

    capitalized

    expensed as incurred

    accumulated until the existence of future benefits is determined

    expensed in part and capitalized in part

    Question 9

    Which depreciation method calculates annual depreciation expense based on the book value of an asset?

    double-declining balance

    sum-of-the-years'-digits

    inventory systems

    group depreciation

    Question 10

    Which amortization method should be used for intangibles that are amortized?

    a method based on the expected pattern of benefits to be produced by the asset

    a method based on an annual review for impairment

    the straight-line method; all others are inappropriate

    any method is appropriate

    Question 11

    Which one of the following statements is not a disclosure requirement for depreciation?

    the balance of major classes of depreciable assets

    a general description of the method(s) used for depreciation

    the accumulated depreciation for each major class of depreciable asset

    the useful lives for each major class of depreciable asset

    Question 12

    Which statement regarding goodwill is true?

    goodwill is an unidentifiable intangible asset

    internally developed goodwill should be capitalized while purchased goodwill should be expensed

    goodwill can be defined as the value attached to the ability of a company to earn a higher than normal rate of return on the book value of its identifiable assets

    in some situations, FASB Statement No. 141 requires that negative goodwill be recorded

    Question 13

    What effect does depreciation have on the calculation of the rate of return on total assets?

    affects both the numerator and denominator

    no effect

    increases it

    decreases it

    Question 14

    Concerning computer software to be sold, leased, or otherwise marketed, which of the following costs are inventoriable and thus included in cost of goods sold?

    maintenance and customer support costs

    design, coding, and testing costs incurred before technological feasibility is established

    costs of software developed for internal use

    costs of disks, software duplication, and training materials

    Question 15

    The Pecan Street Ice Cream Company discovers that depreciation expense was overstated last year. How should this discovery be reported in the current year?

    as a reduction in the current year's depreciation expense

    as an increase to the retained earnings beginning balance

    as a miscellaneous item in the Other Revenue/Expense section of the income statement

    as a footnote only to the current year's financial statements

    Question 16

    Which of the following expenditures cannot be included in R&D costs?

    indirect costs

    intangibles purchased from others

    personnel costs

    contract services performed for others

    Question 17

    Which of the following is not a required disclosure regarding goodwill for each period a company presents a balance sheet?

    the amount of goodwill acquired

    the amount of goodwill sold

    the amount of any impairment loss recognized

    the amount of any goodwill included in the disposal of a reporting unit

    Question 18

    Related to in-process R&D the acquiring company may:

    capitalize it.

    treat it as an intangible asset.

    increase the amount of goodwill.

    establish a patent in the name of the purchased company.

    Question 19

    Which one of the following disclosures is required by generally accepted accounting principles?

    depreciation expense for each major class of asset

    balances of major classes of depreciable assets, by nature or function

    accumulated depreciation on each depreciable asset

    an explanation of why the depreciation method used was selected by management

    Question 20

    Which of the following methods is used to amortize intangible assets over their useful lives?

    a declining balance method

    straight line

    annual review for impairment

    intangible assets are not amortized

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    https://brainmass.com/business/accounting/trademarks-or-trade-names-317129

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    Question 1

    Trademarks or trade names

    must be renewed every 40 years

    can be considered intangibles with indefinite lives

    are developed internally and thus should not have any related costs capitalized and amortized

    are synonymous with internally developed goodwill

    can be considered intangibles with indefinite lives
    http://en.wikipedia.org/wiki/Trademark

    Question 2

    The factors involved in computing periodic depreciation charges for an asset do not include the

    method of cost allocation

    current value of the asset

    service life

    residual value of the asset

    current value of the asset

    Question 3

    Which of the following statements concerning internally developed goodwill is true?

    it is a separately identifiable asset

    it is capitalized at its cost

    the costs associated with its development are expensed as incurred

    measuring its value is relatively easy and reliable

    the costs associated with its development are expensed as incurred

    http://www.principlesofaccounting.com/questions%20-%20%20multiple%20choice/chapter%2011%20-%20multiple%20choice.htm#10. d.

    Question 4

    Software production costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways:

    all software production costs should be recorded as R&D expense

    all software production costs should be capitalized

    all software production costs should be recorded in R&D expense until technological feasibility is established

    all software production costs should be recorded in R&D expense until the product is available for general release to customers

    all software production costs should be recorded in R&D expense until technological feasibility is established

    Question 5

    Which one of the following statements is true?

    The activity method of computing depreciation could result in zero depreciation expense in some periods of time.

    If the activity method is in use, residual value should not be subtracted from cost to determine the depreciation base.

    The activity method produces a constant unit cost of depreciation.

    The ...

    Solution Summary

    Response discusses the Trademarks or trade names

    $2.19

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