Question :
191.The federal government grants patents for
a.
40 years.
b.
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191.The federal government grants patents for
a.
40 years.
b.
20 years.
c.
10 years.
d.
the useful life of the patent.
192.The exclusive right to sell a computer program is covered by which intangible?
a.
Software
b.
Patent
c.
Franchise
d.
Trademark
193.Which of the following costs normally is expensed in the year incurred, regardless of the extent of future benefit?
a.
Leasehold improvements
b.
Customer lists
c.
Research and development
d.
Patents
194.The exclusive right to publish and sell a literary, artistic, or musical work is called a
a.
copyright.
b.
franchise.
c.
trademark.
d.
patent.
195.According to generally accepted accounting principles, the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to
a.
carry the cost as an asset indefinitely.
b.
write the cost off immediately.
c.
amortize the cost over a reasonable life.
d.
amortize the cost over five years.
196.According to generally accepted accounting principles, the proper accounting treatment of the cost of developing intangible assets is to
a.
carry the cost as an asset indefinitely.
b.
amortize the cost over five years.
c.
amortize the cost over a reasonable life.
d.
write the cost off immediately.
197.A leasehold is a payment
a.
for the right to use certain property.
b.
to give up or to get out of a lease.
c.
to improve leased property.
d.
for the right to sublease certain property.
198.According to generally accepted accounting principles, goodwill is recorded as an asset
a.
when favorable factors combine to create goodwill.
b.
when a company has superior earning power.
c.
when it is paid for as part of the purchase of a business.
d.
under no circumstances.
199.A copyright is obtained for what becomes a very successful book. The publisher expects the book to generate sales for ten years. The copyright should be
a.
expensed immediately.
b.
amortized over 10 years.
c.
amortized over a reasonable life.
d.
amortized over the author’s life plus 70 years.
200.When an intangible asset becomes worthless,
a.
it should remain on the books at its existing carrying value.
b.
its remaining carrying value should be amortized over 20 years.
c.
prior years’ accounting records should be adjusted retroactively.
d.
its remaining carrying value should be written off immediately as a loss.
201.A symbol or name used to identify a product or service is called a
a.
copyright.
b.
license.
c.
patent.
d.
trademark.
202.Which of the following would be subject to an annual impairment test?
a.
Goodwill
b.
Patent
c.
Copyright
d.
All of these choices
203.Which of the following would be subject to an annual impairment test, but not to periodic amortization?
a.
Noncompete covenant
b.
Customer list
c.
Goodwill
d.
Leasehold
