ACC 350 (Ch. 12: Intangibles) Question
and answers already passed 2025
Which of the following does not describe intangible assets?
a. They lack physical existence.
b. They are financial instruments.
c. They provide long-term benefits.
d. They are classified as long-term assets. - correct answer ✔b. They are
financial instruments.
Which of the following characteristics do intangible assets possess?
a. Physical existence.
b. Claim to a specific amount of cash in the future.
c. Long-lived.
d. Held for resale. - correct answer ✔c. Long-lived.
Which characteristic is not possessed by intangible assets?
,a. Physical existence.
b. Long-lived.
c. Result in future benefits.
d. Expensed over current and/or future years. - correct answer ✔a. Physical
existence.
Costs incurred internally to create intangibles are
a. capitalized.
b. capitalized if they have an indefinite life.
c. expensed as incurred.
d. expensed only if they have a limited life. - correct answer ✔C
Which of the following costs incurred internally to create an intangible asset is
generally expensed?
a. Research and development costs.
b. Filing costs.
,c. Legal costs.
d. All of these answer choices are correct. - correct answer ✔A
Which of the following methods of amortization is normally used for intangible
assets?
a. Sum-of-the-years'-digits
b. Straight-line
c. Units of production
d. Double-declining-balance - correct answer ✔B
The cost of an intangible asset includes all of the following except
a. purchase price.
b. legal fees.
c. other incidental expenses.
d. All of these choices are included. - correct answer ✔D
, Factors considered in determining an intangible asset's useful life include all
of the following except
a. the expected use of the asset.
b. any legal or contractual provisions that may limit the useful life.
c. any provisions for renewal or extension of the asset's legal life.
d. the amortization method used. - correct answer ✔C
Under current accounting practice, intangible assets are classified as
a. amortizable or unamortizable.
b. limited-life or indefinite-life.
c. specifically identifiable or goodwill-type.
d. legally restricted or goodwill-type. - correct answer ✔B
Companies should test indefinite life intangible assets at least annually for
a. recoverability.
b. amortization.
and answers already passed 2025
Which of the following does not describe intangible assets?
a. They lack physical existence.
b. They are financial instruments.
c. They provide long-term benefits.
d. They are classified as long-term assets. - correct answer ✔b. They are
financial instruments.
Which of the following characteristics do intangible assets possess?
a. Physical existence.
b. Claim to a specific amount of cash in the future.
c. Long-lived.
d. Held for resale. - correct answer ✔c. Long-lived.
Which characteristic is not possessed by intangible assets?
,a. Physical existence.
b. Long-lived.
c. Result in future benefits.
d. Expensed over current and/or future years. - correct answer ✔a. Physical
existence.
Costs incurred internally to create intangibles are
a. capitalized.
b. capitalized if they have an indefinite life.
c. expensed as incurred.
d. expensed only if they have a limited life. - correct answer ✔C
Which of the following costs incurred internally to create an intangible asset is
generally expensed?
a. Research and development costs.
b. Filing costs.
,c. Legal costs.
d. All of these answer choices are correct. - correct answer ✔A
Which of the following methods of amortization is normally used for intangible
assets?
a. Sum-of-the-years'-digits
b. Straight-line
c. Units of production
d. Double-declining-balance - correct answer ✔B
The cost of an intangible asset includes all of the following except
a. purchase price.
b. legal fees.
c. other incidental expenses.
d. All of these choices are included. - correct answer ✔D
, Factors considered in determining an intangible asset's useful life include all
of the following except
a. the expected use of the asset.
b. any legal or contractual provisions that may limit the useful life.
c. any provisions for renewal or extension of the asset's legal life.
d. the amortization method used. - correct answer ✔C
Under current accounting practice, intangible assets are classified as
a. amortizable or unamortizable.
b. limited-life or indefinite-life.
c. specifically identifiable or goodwill-type.
d. legally restricted or goodwill-type. - correct answer ✔B
Companies should test indefinite life intangible assets at least annually for
a. recoverability.
b. amortization.
