Amortization expense is recorded for: A. A franchise established with a contract that allows for unlimited extensions. B. Intangible assets with a finite life. C. Intangible assets with an indefinite life. D. Goodwill
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(33) Amortization expense is recorded for:
A. A franchise established with a contract that allows for unlimited extensions.
B. Intangible assets with a finite life.
C. Intangible assets with an indefinite life.
D.
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- 1. A change in the amortization rate for an intangible asset should be accounted for a. by retrospective restatement. b. by retrospective application. c. on a prospective basis. d. on a current basis. 2. If a franchise becomes worthless before the end of its useful life, the carrying amount of the franchise account should be charged as a. franchise expense in the current period. b. a prior period adjustment. c. impairment loss. d. amortization expense. 3. Which of the following is a true statement concerning research and development (R&D) costs? a. All R&D costs, without exception, must be charged to expense when incurred. b. R&D costs can only be amortized over a life of 40 years or more. c. Almost any treatment is acceptable for handling R&D costs. d. Financial statements must disclose total R&D costs charged to expense in the period 4. Which of the following is an unidentifiable asset? a. Goodwill b. Private-to-private franchise c. Deferred charges d. Unearned…Net book value is Select one: a. Amount of which an asset is recognized in the balance sheet after deducting any accumulated depreciation. b. Net amount which the entity expects to obtain for an asset at the end of its useful life. c. Amount of cash or cash equivalent paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction. d. Cost of an asset or the amount substituted for cost in the financial statements, less its residual valueWhich statements are correct concerning measurement of cost of property, plant and equipment?I. The purchase price of an item of property, plant and equipment is the cash price equivalent at the date of recognitionII. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and total payment is recognized as interest expense over the life of the asset.III. If an item of property, plant and equipment is acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary asset, the cost of such item is measured at fair value unless the exchange transaction lacks commercial substance or fair value of either asset received or given up is not reliably determinable.IV. If an entity is able to determine reliably the fair value of both the asset given up and asset received in an exchange, the fair value of the asset given up is used to measure the cost of asset received in exchange.
- Question 1. For any single intangible asset that is material to an entity's financial statements, which of the following is required to be disclosed? Select all that apply. A. Remaining amortisation period of the intangible asset B. Carrying amount of the intangible asset C. Line item on the income statement whichtotal amortization is included D. Description of the intangible assetWhich of the following statements is true regarding the amortization of intangible assets? a. Intangible assets with a limited useful life are not amortized.b. The service life of an intangible asset is always equal to its legal life.c. The expected residual value of most intangible assets is zero.d. In recording amortization, Accumulated Amortization is always credited.According to IFRS, all of the following pieces of information about intangible assets mustbe disclosed in a company’s financial statements and footnotes except for:A. fair value.B. impairment loss.C. amortization rate.
- The following are properly classified as capital expenditure, except: a. Expenses to promote business goodwill b. Acquisition of intangibles c. Rentals under a “Lease-to-Own” agreement d. None of the aboveTRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.Which of the following would be amortized? a)oil wells b) landc) equipment d) franchises Which of the following would NOT be considered an intangible asset: a) interest payableb)a patentc)a trade markd) all of these are intangible assets
- 1. It is also known as the right of pre-emption 2. It refers to investments in land for capital appreciation and building for operating lease and are intended to be held for a number of years to generate income and capital gains 3. It includes fees and commission paid to agent, levies by regulatory authorities, transfer taxes and duties.1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent measurement only if a. The useful life of the intangible asset can be readily determined. b. An active market exists for the intangible asset. c. The cost of the intangible asset can be measured reliably. d. The intangible asset is a monetary asset.
