Name: 

Multiple Choice
Identify the choice that best completes the statement or answers the question.

Intangible assets include

Intangible assets do not include

Which one of the following items is not considered a part of the cost of a truck purchased for business use?

Which of the following assets does not decline in service potential over the course of its useful life?

Pippen Clinic purchases land for $90,000 cash. The clinic assumes $1,500 in property taxes due from the previous owner on the land. The legal fees totalled $1,000. The clinic has the land graded for $2,200. What amount does Pippen Clinic record as the cost for the land?

The balance in the Accumulated Amortization account represents the

Accountants for a private comany do not regularly attempt to measure the change in a capital asset's market value during ownership because

Recording amortization each period is necessary in accordance with the

The declining-balance method of amortization produces

Units of activity is an appropriate amortization method to use when

The calculation of amortization using the declining-balance method,

Near the end of the fiscal year, Grant Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years.  If Grand Company adjusts yearly, which of the following statements describes the proper way to revise a useful life estimate?

Expenditures that maintain the operating efficiency and expected productive life of a capital asset are generally

Which of the following is not true of ordinary repairs?

Additions and improvements

The book value of a capital asset is the difference between the

If a capital asset is retired before it is fully amortized, and the residual value received is less than the asset's book value,

Use of straight-line amortization in comparison to the declining-balance method results in

Use of the units-of-activity method of amortization results in

If disposal of a capital asset occurs during the year, amortization is

A truck costing $35,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated amortization on the truck was $16,000. An insurance cheque for $40,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

According to the matching principle, future removal and site restoration costs must be

The method most commonly used to calculate resource amortization is the

Intangible assets are the rights and privileges that result from ownership of long-lived assets that

An intangible asset should

The cost of successfully defending a patent in an infringement suit should be

Goodwill can be recorded

A franchisee should record the rights and privelages paid for when purchasing a franchise on the balance sheet as a(n)

A patent

Copyrights are granted by the federal government

In recording the acquisition cost of an entire business,

Research costs

A computer company has $3,000,000 in development costs relating to successful research. Before accounting for these costs, the net income of the company is $2,200,000. What is the amount of net income or loss after these research and development costs are accounted for?

Which of the following is not an intangible asset that is reported on the balance sheet?