Question :
71. Which of the following is/are true about goodwill? A. Goodwill reflects the : 1245670
71. Which of the following is/are true about goodwill?
A. Goodwill reflects the value of knowledgeable employees.
B. Goodwill reflects the value of a reputation for quality products.
C. Under both U.S. GAAP and IFRS, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill.
D. Firms must test goodwill annually for a loss in value.
E. all of the above
72. Which of the following is not true about goodwill?
A. Goodwill reflects the value of knowledgeable employees.
B. Goodwill reflects the value of a reputation for quality products.
C. Under U.S. GAAP, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill.
D. Firms must test goodwill annually for a loss in value.
E. Under IFRS, goodwill has an indefinite life, and firms amortize the amount recognized as goodwill.
73. Which of the following is not true about goodwill?
A. Goodwill reflects the value of knowledgeable employees.
B. Goodwill reflects the value of a reputation for quality products.
C. Under IFRS, goodwill has an indefinite life, and firms do not amortize the amount recognized as goodwill.
D. Firms must test goodwill annually for a loss in value.
E. Under U.S. GAAP, goodwill has an indefinite life, and firms amortize the amount recognized as goodwill.
74. Which of the following is/are true about holding gains on assets?
A. U.S. GAAP recognizes the holding gain on the assets for the increase in values.
B. IFRS permits recognition of the holding gains under certain circumstances.
C. IFRS precludes recognition of the holding gain on assets for the increase in values.
D. Under U.S. GAAP, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
E. Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
75. Which of the following is/are true about holding gains on assets?
A. U.S. GAAP recognizes the holding gain on the assets for the increase in values.
B. IFRS permits recognition of the holding gains under certain circumstances.
C. Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
D. Under U.S. GAAP, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
E. all of the above
76. Which of the following is/are true regarding the fair value of long-lived assets?
A. U.S. GAAP does not permit firms to increase the balance sheet carrying values of tangible and intangible long-lived assets when the fair values of their assets increase.
B. IFRS permits upward asset revaluations, the recognition of unrealized increases in the fair value of tangible and intangible long-lived assets under certain conditions.
C. IFRS requires that firms credit the increase in the tangible and intangible revalued asset’s balance sheet carrying value to other comprehensive income.
D. U.S. GAAP firms recognize the increase in the fair value of the tangible and intangible asset only as the firm realizes the value increase through either sale or continuing use.
E. all of the above
77. Which of the following is/are not true regarding the fair value of long-lived assets?
A. U.S. GAAP does not permit firms to increase the balance sheet carrying values of tangible and intangible long-lived assets when the fair values of their assets increase.
B. IFRS permits upward asset revaluations, the recognition of unrealized increases in the fair value of tangible and intangible long-lived assets under certain conditions.
C. IFRS requires that firms credit the increase in the tangible and intangible revalued asset’s balance sheet carrying value to net income.
D. U.S. GAAP firms recognize the increase in the fair value of the tangible and intangible asset only as the firm realizes the value increase through either sale or continuing use.
E. all of the above
78. Which of the following is/are true regarding measuring changes in the fair values of long-lived assets?
A. U.S. GAAP requires firms to recognize decreases in fair values as an impairment loss, and to recognize unrealized increases in fair values.
B. IFRS requires firms to recognize decreases in fair values as an impairment loss, and to never recognize unrealized increases in fair value.
C. U.S. GAAP requires firms to not recognize decreases in fair values, but to recognize unrealized increases in fair value.
D. IFRS requires firms to not recognize decreases in fair values, but to recognize unrealized increases in fair value.
E. U.S. GAAP and IFRS requires firms to recognize decreases in fair values as an impairment loss, and differ as to the recognition of unrealized increases in fair values.
79. Goodwill that was internally developed should be amortized over a life not to exceed
A. 100 years
B. 40 years
C. 20 years
D. 10 years
E. No useful life, as such goodwill is not recorded as an asset
80. (CMA adapted, Dec 86 #12) A patent is granted by the federal government to an inventor for a period of several years. Costs that are capitalized with regard to a patent would include
A. legal fees of obtaining the patent, incidental costs of obtaining the patent, and costs of successful patent infringement suits.
B. legal fees of obtaining the patent, incidental costs of obtaining the patent, and research and development costs incurred on the invention that is patented.
C. legal fees of obtaining the patent, costs of successful patent infringement suits, and research and development costs incurred on the invention that is patented.
D. legal fees of obtaining the patent, costs of successful and unsuccessful patent infringement suits, and research and development costs incurred on the invention that is patented.
E. legal fees of obtaining the patent, costs of successful and unsuccessful patent infringement suits, and development costs incurred on the invention that is patented.
