Which of the following is not part of the definition of control? ability to obtain substantigly all remaining benefits of the asset ability to return the asset to its original owner ability to prevent other companies from directing the use or receiving benefits from assets ability to direct use of the asset

Which of the following is not part of the definition of control? ability to obtain substantigly all remaining benefits of the asset ability to return the asset to its original owner ability to prevent other companies from directing the use or receiving benefits from assets ability to direct use of the asset

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10MC

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1. Which is incorrect concerning the criterion of control by the enterprise of the intangible asset? a. The skill of employees arising out of the benefits of training costs can be recognized as intangible asset. b. The capacity of the enterprise to control the economic benefits from an intangible asset would normally stem from legal rights that are enforceable in a court of law. c. An enterprise controls an asset if the enterprise has the power to obtain the future economic benefits flowing from the underlying resource and also can restrict the access of others to those benefits.’ d. Market and technical knowledge may give rise to future economic benefits which can be controlled by the enterprise if the knowledge is protected by legal rights such as copyright. 2. An entity is performing an annual test of the impairment of goodwill for a cash-generating unit. It has determined that the fair value of the unit exceeds the carrying amount. Which statement is true concerning the test of…
A company could change their intention of use for an intangible asset resulting in the asset no longer being considered defensive? If this occurs, what is the impact on the accounting for the intangible asset?
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Which one of the following situation where a performance obligation is satisfied over time ? a- The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity
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Which of the following is not part of the definition of an asset O a. Control of a resource O b. Resulting from a past event O c. Inflow of economic benefits Od. During the accounting period
Which of the following is/are not capitalized as an intangible asset? Select one: a. Legal costs to defend a patent successfully and goodwill acquired when a company purchases another company. b. Costs of an internally developed patent and goodwill acquired when a company purchases another company. c. Costs of an internally developed patent and legal costs to defend a patent successfully. d. Goodwill acquired when a company purchases another company and costs to purchase a patent. e. Costs to purchase a patent and legal costs to defend a patent successfully.
The objective of the HRA is to______ a. provide a determination of asset control as to whether human assets are conserved, developed or depreciated b. aid in the development of management principles by classifying the assets and liabilities of the organization for tax purpose c. None of the given options are correct d. Both the given options are correct
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