ACCT 5001 Exam 2 Q & As (Verified
Answers) 2026 Update
What is the role of the MD&A disclosure? - Correct Answers
✅To give shareholders the ability to examine a corporation
through the eyes of management
What are raw materials? - Correct Answers ✅goods that
can be used to build products to sell
What is work in progress? - Correct Answers ✅Partly
finished goods
What are finished goods? - Correct Answers ✅products
completed and ready for sale
What is included in COGS for a service company? - Correct
Answers ✅Labor, travel, compensation
Patents, copyrights, and franchising are considered
determinable (limited), which means we _________ the cost
using the ______________ method. - Correct Answers
✅Amortize, straight-line
______________ and ______________ are considered not
determinable (Indefinite) which means we do not amortize. -
Correct Answers ✅Trademark, goodwill
, ACCT 5001 Exam 2 Q & As (Verified
Answers) 2026 Update
What is the right to use, make, and sell a product? - Correct
Answers ✅Patent
What is the right to reproduce and sell published work? -
Correct Answers ✅Copyright
What is the right to do business in a certain geographic area -
Correct Answers ✅Franchise
What is the right to display a word, slogan symbol, or emblem
that distinctively identifies a company, product, or service? -
Correct Answers ✅Trademark
This occurs when one company buys another company. It is
the difference between the purchase price and the FMV of net
assets. - Correct Answers ✅Goodwill
When calculating goodwill, is fair or book value used? -
Correct Answers ✅Fair
Explain the steps in calculating depreciation expense using
the double-declining balance? - Correct Answers ✅1. 100 /
# of useful years = Y
2. Y x 2 = X
Answers) 2026 Update
What is the role of the MD&A disclosure? - Correct Answers
✅To give shareholders the ability to examine a corporation
through the eyes of management
What are raw materials? - Correct Answers ✅goods that
can be used to build products to sell
What is work in progress? - Correct Answers ✅Partly
finished goods
What are finished goods? - Correct Answers ✅products
completed and ready for sale
What is included in COGS for a service company? - Correct
Answers ✅Labor, travel, compensation
Patents, copyrights, and franchising are considered
determinable (limited), which means we _________ the cost
using the ______________ method. - Correct Answers
✅Amortize, straight-line
______________ and ______________ are considered not
determinable (Indefinite) which means we do not amortize. -
Correct Answers ✅Trademark, goodwill
, ACCT 5001 Exam 2 Q & As (Verified
Answers) 2026 Update
What is the right to use, make, and sell a product? - Correct
Answers ✅Patent
What is the right to reproduce and sell published work? -
Correct Answers ✅Copyright
What is the right to do business in a certain geographic area -
Correct Answers ✅Franchise
What is the right to display a word, slogan symbol, or emblem
that distinctively identifies a company, product, or service? -
Correct Answers ✅Trademark
This occurs when one company buys another company. It is
the difference between the purchase price and the FMV of net
assets. - Correct Answers ✅Goodwill
When calculating goodwill, is fair or book value used? -
Correct Answers ✅Fair
Explain the steps in calculating depreciation expense using
the double-declining balance? - Correct Answers ✅1. 100 /
# of useful years = Y
2. Y x 2 = X
