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    Intermediate Accounting Exam 10

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    BLACKPINKLisaRoseJisooJennie
    1. The document provides instructions and questions for an intermediate accounting exam. It contains 5 multiple choice questions related to accounting for intangible assets. 2. Students are warned that cheating is not allowed and will result in serious consequences. 3. The questions cover topics such as residual value of intangible assets, factors to consider when estimating useful life, definitions of amortization, and components of cost for internally generated intangible assets.

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    Intermediate Accounting Exam 10

    Uploaded by

    BLACKPINKLisaRoseJisooJennie
    404 views2 pages
    1. The document provides instructions and questions for an intermediate accounting exam. It contains 5 multiple choice questions related to accounting for intangible assets. 2. Students are warned that cheating is not allowed and will result in serious consequences. 3. The questions cover topics such as residual value of intangible assets, factors to consider when estimating useful life, definitions of amortization, and components of cost for internally generated intangible assets.

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    INTERMEDIATE ACCOUNTING EXAM 10

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    1. The document provides instructions and questions for an intermediate accounting exam. It contains 5 multiple choice questions related to accounting for intangible assets. 2. Students are warned that cheating is not allowed and will result in serious consequences. 3. The questions cover topics such as residual value of intangible assets, factors to consider when estimating useful life, definitions of amortization, and components of cost for internally generated intangible assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    404 views2 pages

    Intermediate Accounting Exam 10

    Uploaded by

    BLACKPINKLisaRoseJisooJennie
    1. The document provides instructions and questions for an intermediate accounting exam. It contains 5 multiple choice questions related to accounting for intangible assets. 2. Students are warned that cheating is not allowed and will result in serious consequences. 3. The questions cover topics such as residual value of intangible assets, factors to consider when estimating useful life, definitions of amortization, and components of cost for internally generated intangible assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    INTERMEDIATE ACCOUNTING EXAM 10

    General Rule: Please, read all the questions properly, observe carefully the problems, and answer the
    following with intelligence. You must put your solutions at the back of the paper, which is written clearly and
    readable. WARNING! Cheating is not allowed, being caught on act of cheating that person/s will face a great
    consequence. (10 Points)

    1.The residual value of an intangible asset with a finite life shall be assumed zero, unless
    I. There is a commitment by a third party to purchase the asset at the end of its useful life.
    II. There is an active market for the asset and residual value can be determined by reference to that
    market and it is probable that such market will exist at the end of the asset's useful life.
    A. Both I and II C. II only
    B. Neither I nor II D. I only

    2. Which of the following factors should not be considered in estimating the useful life of intangible
    asset?
    A. Legal, regulatory or contractual provision
    B. Expected action by competitors or potential competitors
    C. Residual value
    D. Expected usage of the asset

    It is the systematic allocation of the cost of an intangible asset less any residual value as an expense
    3.
    over the asset's useful life.
    A. Depreciation C. Depletion
    B. Realization D. Amortization

    4. Which statement is true concerning useful life of an intangible asset?


    I. An intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to
    the period over which the asset is expected to generate net cash inflows for the entity,
    II. The useful life of an intangible asset arising from contractual or other legal rights shall not exceed the
    period of those rights but may be shorter depending on the period over which the asset is expected to
    be used by the entity.
    III. If the rights are conveyed for a limited term that can be renewed, the useful life shall include the
    renewal period only if there is evidence to support renewal by the entity without significant cost.
    A. I and II only
    B. I and III only
    C. II and III only
    D. I, II and III
    5. Which is not a component of the cost of internally generated intangible asset?
    A. Cost of materials and services used or consumed in generating the intangible asset.
    B. Cost of employee benefits arising from the generation of the intangible asset.
    C. Fees to register a legal right.
    D. Expenditure on training staff to operate the asset.

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