Intangible and Other Assets

1. Long lived properties items having no physical existence and whose value lies in the rights, privileges
and advantages they accord to the owner; identifiable nonmonetary assets without physical substance.
a. !ixed asset c. Intangible Assets
b. "eferred #harges d. $angible Assets
%. $he original and planned investigation underta&en with the prospect of gaining new scientific or
technical &nowledge and understanding.
a. 'esearch c. 'esearch and "evelopment
b. "evelopment d. (ome other Answer
). $he application of research finding or other &nowledge to a plan or design for the production of new or
substantially improved materials, devices, products, processes, systems or services before the start of
commercial production or use.
a. 'esearch c. 'esearch and "evelopment
b. "evelopment d. (ome other Answer
*. $hose costs of materials, personnel, purchased intangibles, contract services and a reasonable
allocation of indirect cost specifically related to research and development activities and which have no
alternative future uses.
a. 'esearch expenses c. 'esearch and "evelopment expenses
b. "evelopment expenses d. (ome other Answer
+. An exclusive right granted by the government to an inventor enabling him to control the manufacture,
sale or other use of invention for a specified period of time.
a. !ranchise c. ,ublic !ranchise
b. ,atent d. ,rivate !ranchise
-. $he right to manufacture sell or ma&e use of a patent assigned by the patent owner.
a. License c. Licensee
b. 'oyalty d. .rant
/. $he periodic payment made by the licensee to the patent holder as compensation for the assignment to
the former of the latter0s patent rights
a. License c. License !ee
b. 'oyalty d. .rant
1. An exclusive right given to an applicant to publish or sell any literary, musical or artistic wor&
a. !ranchise c. #opyright
b. License d. Answer not given
2. Any distinguishing device, symbol, label or name used to differentiate a product, article, business or
services from others
a. 'egistered name c. 3rand name
b. $radename or $rademar& d. Label
14. A privilege granted by the government permitting a monopoly, or the use of public property sub5ect to
government regulations
a. !ranchise c. ,ublic !ranchise
b. ,atent d. ,rivate !ranchise
11. A privilege often exclusive given to distributor or dealer by a manufacturer, to sell the manufacturer0s
product within a specified territory; also called a distributor or dealership.
a. !ranchise c. ,ublic !ranchise
b. ,atent d. ,rivate !ranchise
1%. Alterations or improvements made by the lessee on leased property
a. Leasehold improvements c. Operating lease
b. Leased premises d. !inance lease
1). $he present value of the amount by which earnings of the business exceed a normal or basic return
on its net assets exclusive of goodwill
a. .oodwill c. 6egative .oodwill
b. !ranchise d. (ome other Answer
1*. 7xpenditures incurred in connection with the original incorporation and promotion of an enterprise.
a. "eferred #harges c. ,reoperating costs
b. Organi8ation 7xpenses d. ,romoters and underwriters fee
1+. Advance payments made for services or supplies which have not been utili8ed by the business, and
which are expected to be consumed in the next accounting period or operation cycle whichever is longer
a. ,repaid 7xpenses c. ,re operating costs
b. "eferred #harges d. Advances
1-. 7xpenditures which are applicable to operations of future accounting periods
a. ,repaid 7xpenses c. ,re operating costs
b. "eferred #harges d. Advances
.eneral #oncepts
1/. 9hich of the following is not a characteristic of an intangible asset:
a. ,hysically exists c. 'elatively long lived
b. #onfers certain rights d. ;alue highly uncertain
11. 9hich of the following is an example of an intangible asset with unlimited life
a. #opyrights c. $rademar&s and $rade names
b. ,atents d. (ome other Answer
12. 9hich of the following is an identifiable intangible asset:
a. ,atents c. .oodwill
b. #opyrights d. Licenses
%4. At the time of ac<uisition, an intangible asset may be valued at
a. cash paid c. the present value of amount to be paid
b. fair value of noncash asset given up d. Any of the above
%1. 9hich of the following is generally used in amorti8ing intangible assets sub5ect to amorti8ation:
a. straight line method c. scientific method
b. unit of production method d. =airus triple declining method
%%. "eferred charges
a. are payments for services which have not yet been utili8ed by the business
b. are cash received or other assets recogni8ed for goods and services that are to be supplied in
the future periods
c. represents that portion of an expenditure for a service made prior to the balance sheet date
and which will be consumed in the normal operating cycle
d. are prepayments for services or benefits that are to be received over a number of years.
%). "eferred charges classification in the balance sheet sometimes contains heterogeneous items. 9hich
of the following should not be included under the deferred charges classification
a. >namorti8ed bond discount
b. ,re operating expenses
c. 'esearch and development costs
d. "eferred pension cost
,A( )1 on research and development
%*. 9hich of the following items is a research activity:
a. $he design, construction and testing of a chosen alternative for new or improved materials,
devices, products processes, systems or services
b. $he formulation, design, evaluation and final selection of possible alternatives for new or
improved materials, devices, products, processes, systems or services
c. $he design of tools, 5igs, moulds and dies involving new technology
d. $he design, construction and operation of a pilot plant that is not of a scale economically
feasible for commercial production
%+. 9hich of the following items is a development activity:
a. Activities aimed at obtaining new &nowledge
b. $he search for, evaluation and final selection of, applications of research findings or other
&nowledge
c. $he design, construction and testing of preproduction or pre use prototypes and models
d. $he search for alternatives for materials, devices, products, processes, systems or services
%-. 9hich is incorrect concerning ac<uisition of an intangible asset as part of a business combination:
a. $he cost of the intangible asset is based on its fair value at the date of ac<uisition
b. If there is an active mar&et from the intangible asset, the fair value is e<ual to the <uoted
mar&et price which is usually the current bid price
c. If there is no active mar&et for the intangible asset, the fair value is e<ual to the amount that
would be paid by the entity in an arm0s length transaction between &nowledgeable and willing parties.
d. $he fair value of an intangible asset ac<uired in a business combination cannot be measure
with sufficient reliability separately from goodwill.
%/. $he cost of internally generated assets includes all of the following except
a. #ost of materials and services used in generating the intangible asset.
b. #ompensation cost of personnel directly engaged in generating the asset.
c. !ees to register a legal right
d. 7xpenditure on training staff to operate the asset.
%1. $he following expenditures shall be expensed when incurred, except
a. (tart up costs
b. advertising and promotion costs
c. 3usiness relocation or reorgani8ation costs
d. ,ayment in advance of delivery of goods or the rendering of services
%2. 9hich statement is correct concerning amorti8ation of intangible assets:
I. Intangible assets with limited or finite life are amorti8ed over their useful life
II. Intangible assets with indefinite life are not amorti8ed but are tested for impairment at least
wee&ly.
a. I only
b. II only
c. 3oth I and II
d. 6either I nor II
)4. "irectly attributable costs of preparing the intangible asset for its intended use include all of the
following except
a. #ost of employee benefits arising directly from bringing the asset to its wor&ing condition
b. ,rofessional fees arising directly from bringing the asset to its wor&ing condition
c. #osts of testing whether the asset is functioning properly
d. Initial operating losses
Answer &eys ? phaccountancy faceboo& page.