F3M7

Question 1

Intangible assets

Answer 1

long-lived legal rights and competitive advantages

Question 2

Specifically identifiable intangible assets

Answer 2

patents and copyrights

Question 3

Not specifically identifiable intangible assets

Answer 3

goodwill

Question 4

Capitalize or expense: acquisition of intangible

Answer 4

Capitalize @ COST

Question 5

Capitalize or expense: internally developed intangible assets

Answer 5

Expensed

Unless it is legal fees related to successful defense, registration or consulting, trademark, or other direct cost

Question 6

Treatment of intangible with determined economic life

Answer 6

amoritze

Question 7

Treatment of intangible without determined econmic life

Answer 7

yearly impairment test only

Question 8

Is goodwill amortized

Answer 8

no

Question 9

A patent is amortized over the __ of its ___ or its ___ life

Answer 9

shorter of its estimated life or remaining legal life

Question 10

Valuation of definite intangible asset

Answer 10

cost - accumulated amortization - impairment

Question 11

Valuation of indefinite intangible asset

Answer 11

cost - imapairment

Question 12

Franchise fees what do you capitalize what do you expense

Answer 12

Capitalize initial fees

Expense continuing fees

Question 13

Capitalize or expense start up costs

Answer 13

expense

Question 14

What is included in start up costs

Answer 14

organizing a new entity

opening a new facility

introducing a product or service

initiating a new process

DOES NOT INCLUDE ACQUISTIONS

Question 15

Capitalize or expense R&D costs

Answer 15

expense

unless the asset has future use, then cap

Question 16

Treatment of performing R&D costs for someone else

Answer 16

inventory

Question 17

Items NOT inlcuded in R&D

Answer 17

marketing research, quality control testing, reformulation of chemical compound

Question 18

Capitalize or Expense Computer Software Development to be sold to other

Answer 18

Expense in the planning phase

Capitalize after technological feasibility establish

Question 19

Capitalize or expense Computer Software Development for Internal Use

Answer 19

expense at preliminary project

capitalize after determining technological feasibility

Question 20

In amortizing software, you amortize the __ of ___ or ___

Answer 20

greater of percentage or straight line