D104 OA 1 LQT | WESTERN GOVENORS
UNIVERSITY | 2026 UPDATE | QUESTION
AND ANSWERS | 100% CORRECT!!
1 of 62
Term
What is true about the intangible asset, goodwill?
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Because no objective transaction with outside parties takes place,
internally created goodwill cannot be capitalized.
Only purchased goodwill may be capitalized.
, The market value of the securities is used to determine the fair market value of
the property.
So, the cost of property acquired vis security issuances is equal to the market
value of the securities.
Intangible assets derive their value from the rights and privileges granted to the
company using them and are classified as a long-term asset.
Intangible assets do not include notes, receivable obligations, or other financial
instruments.
So, intangible assets derive their value from the rights and privileges granted to
the company using them.
Because costs of creating intangibles internally cannot easily be associated with
a specific intangible, these costs are expensed as incurred.
So, they are expensed as incurred.
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2 of 62
Definition
Avoidable interest is the amount of interest cost during the period
that a company could theoretically avoid if it had not made the
decision to purchase the asset in the first place.
So, avoidable interest refers to that portion of total interest cost
which would not have been incurred if expenditures for asset
construction had not been made
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, The notes to the financial statements should include information about acquired
intangible assets, and aggregate amortization expense for how many
succeeding years?
When computing the amount of interest cost to be capitalized, What does
the concept of "avoidable interest" refer to?
In accounting for plant assets, what outlay, made subsequent to acquisition,
should be fully expensed in the period the expenditure is made?
What is the cost of property acquired by the issuance of securities, which are
actively traded on an organized exchange, equal to?
Don't know?
3 of 62
Term
Which principle best describes the current method of accounting for
research and development costs?
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Due to the difficulties of associating costs with particular projects and
determining the life of such activities, the FASB has determined that R&D
costs must be immediately expensed as incurred.
So, immediate recognition as an expense.
, The term involuntary conversion is used to describe the loss of an asset due to
theft, fire, natural disaster, etc.
So, involuntary conversion
Only limited-life intangible assets are tested regularly for impairment using the
recoverability and fair value tests. Because Indefinite-life intangibles, including
goodwill, very easily meet the recoverability test, only a fair value test is used
to test for impairment.
So, limited life intangibles
The market value of the securities is used to determine the fair market value of
the property.
So, the cost of property acquired vis security issuances is equal to the market
value of the securities.
Don't know?
4 of 62
Term
On January 1, a company began construction on a new building. The
company made a payment of $8,000,000 on January 1 and another
payment for $14,000,000 on August 1.
Construction was finished on December 31. The company had an
outstanding loan with a 6% interest rate.
What were the weighted-average accumulated expenditures for the
year?
Give this one a try later!
UNIVERSITY | 2026 UPDATE | QUESTION
AND ANSWERS | 100% CORRECT!!
1 of 62
Term
What is true about the intangible asset, goodwill?
Give this one a try later!
Because no objective transaction with outside parties takes place,
internally created goodwill cannot be capitalized.
Only purchased goodwill may be capitalized.
, The market value of the securities is used to determine the fair market value of
the property.
So, the cost of property acquired vis security issuances is equal to the market
value of the securities.
Intangible assets derive their value from the rights and privileges granted to the
company using them and are classified as a long-term asset.
Intangible assets do not include notes, receivable obligations, or other financial
instruments.
So, intangible assets derive their value from the rights and privileges granted to
the company using them.
Because costs of creating intangibles internally cannot easily be associated with
a specific intangible, these costs are expensed as incurred.
So, they are expensed as incurred.
Don't know?
2 of 62
Definition
Avoidable interest is the amount of interest cost during the period
that a company could theoretically avoid if it had not made the
decision to purchase the asset in the first place.
So, avoidable interest refers to that portion of total interest cost
which would not have been incurred if expenditures for asset
construction had not been made
Give this one a try later!
, The notes to the financial statements should include information about acquired
intangible assets, and aggregate amortization expense for how many
succeeding years?
When computing the amount of interest cost to be capitalized, What does
the concept of "avoidable interest" refer to?
In accounting for plant assets, what outlay, made subsequent to acquisition,
should be fully expensed in the period the expenditure is made?
What is the cost of property acquired by the issuance of securities, which are
actively traded on an organized exchange, equal to?
Don't know?
3 of 62
Term
Which principle best describes the current method of accounting for
research and development costs?
Give this one a try later!
Due to the difficulties of associating costs with particular projects and
determining the life of such activities, the FASB has determined that R&D
costs must be immediately expensed as incurred.
So, immediate recognition as an expense.
, The term involuntary conversion is used to describe the loss of an asset due to
theft, fire, natural disaster, etc.
So, involuntary conversion
Only limited-life intangible assets are tested regularly for impairment using the
recoverability and fair value tests. Because Indefinite-life intangibles, including
goodwill, very easily meet the recoverability test, only a fair value test is used
to test for impairment.
So, limited life intangibles
The market value of the securities is used to determine the fair market value of
the property.
So, the cost of property acquired vis security issuances is equal to the market
value of the securities.
Don't know?
4 of 62
Term
On January 1, a company began construction on a new building. The
company made a payment of $8,000,000 on January 1 and another
payment for $14,000,000 on August 1.
Construction was finished on December 31. The company had an
outstanding loan with a 6% interest rate.
What were the weighted-average accumulated expenditures for the
year?
Give this one a try later!
