Select all of the following statements about intangibles that are TRUE The cost of a purchased...

Select all of the following statements about intangibles that are TRUE

The cost of a purchased intangible includes the purchase price, legal fees and other incidental expenses Bond investments are considered intangibles

A company can capitalize legal costs associated with an internally created intangible asset

When amortizing an intangible asset, an accumulated amortization contra account is always used

Only limited life intangibles are regularly evaluated for impairment

Trademarks are considered the property of the company originating the trademark for 70 years

The useful life of an intangible is the period over which these assets will contribute to a company's cash flows

Solutions

Expert Solution

Solution

The true statements are –

The cost of a purchased intangible includes the purchase price, legal fees and other incidental expenses.

When amortizing an intangible asset, an accumulated amortization contra account is always used.

Trademarks are considered the property of the company originating the trademark for 70 years

The useful life of an intangible is the period over which these assets will contribute to a company's cash flows

False statements –

Bond investments are considered intangibles

Explanation: bond investments are tangible assets. As these derive their value from contractual claims

Only limited life intangibles are regularly evaluated for impairment

This statement is incorrect, as goodwill is an intangible with indefinite life. Nevertheless, goodwill is tested for impairment.

A company can capitalize legal costs associated with an internally created intangible asset.

Research and development costs related to the internally developed intangible asset are not to be capitalized. The costs are difficult to assign to a specific intangible asset.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Which of the following statements are true about the accounting transactions? Select all that apply Transactions...

Which of the following statements are true about the accounting transactions? Select all that apply Transactions occur when a source document (e.g., a billing) arrives, a time-based obligation (e.g., payroll payment deadline) occurs, or when closing accounts to prepare financial reports. A transaction will always debit one account and credit another account. When journalizing a transaction, the following equation must be maintained: Assets + Net Worth = Revenues + Liabilities + Expenses. None of the above.

Which of the following are true statements about ketones? Select all that apply: Acetone can be...

Which of the following are true statements about ketones? Select all that apply: Acetone can be used as a solvent for lacquer (including fingernail polish). They each contain a functional group in the middle of a carbon chain with the structure −CO. They are named using the suffix -al. They are named using the suffix -one.

Select all of the statements that are true about the mechanical layers of the earth. Group...

Select all of the statements that are true about the mechanical layers of the earth. Group of answer choices The layers are defined by their chemical structure. The earth's core is broken into two components - inner and outer. The layers are defined by their physical/behavioral properties. The two crust types - oceanic and continental crust - are mechanical layers. The core is a single layer. The asthenosphere is a mechanical layer.

All of the following statements about the Dodd-Frank Act are true, except: Select the correct answer...

All of the following statements about the Dodd-Frank Act are true, except: Select the correct answer below: ---the Dodd-Frank Act was designed to protect the American taxpayer by promoting government bailouts. ---the Dodd-Frank Act was designed to promote the financial stability by improving accountability in the financial system. ---the Dodd-Frank Act was designed to protect consumers from abusive financial services practices. ---the Dodd-Frank Act was designed to promote the financial stability by improving transparency in the financial system.

All of the following statements about life insurance are true, EXCEPT: Select one: a. Whole life...

All of the following statements about life insurance are true, EXCEPT: Select one: a. Whole life insurance is regarded as permanent insurance and is generally more expensive than term insurance. b. Beneficiaries who receive benefits under life insurance policies after the insured’s death must pay income tax on the death benefits they receive. c. Term life insurance provides temporary protection for a stated number of years, and is frequently renewable. d. The incontestable clause states that the insurer cannot contest...

Which of the following statements about enzyme mechanism reaction steps are true (select all that apply)?...

Which of the following statements about enzyme mechanism reaction steps are true (select all that apply)? On a reaction coordinate diagram, a reversible step is indicated by reactant and product at similar energy Irreversible steps are important in enzyme mechanisms to help ensure enzymes catalyze reactions in the desired direction Substrate binding is usually an irreversible step Irreversible steps of a reaction mechanism are always very slow To determine if a step is reversible or irreversible, it is necessary to...

Which of the following statements about the Modified Accelerated Cost Recovery System (MACRS) is true? (Select...

Which of the following statements about the Modified Accelerated Cost Recovery System (MACRS) is true? (Select all that apply.) Check All That Apply MACRS is not acceptable for financial reporting purposes. MACRS is similar to the units-of-production method and is applied over relatively short asset lives to yield high depreciation expense in the early years. Most corporations use MACRS to calculate depreciation expense for their tax returns. The lower amounts depreciation expense reported under MACRS reduces a corporation's taxable income...

Which of the following statements is/are TRUE? Select all thatapply.A. a stack is a...

Which of the following statements is/are TRUE? Select all that apply.A. a stack is a good data structure to use for a depth-first search (DFS)B. a stack is a good data structure to use for a breadth-first search (BFS)C. a queue is a good data structure to use for a depth-first search (DFS)D. a queue is a good data structure to use for a breadth-first search (BFS)E. a deque is a good data structure to use for a depth-first search...

6. Select all of the following statements that are true of the promoter of a gene....

6. Select all of the following statements that are true of the promoter of a gene. A)it is transcribed B)it is translated C)it is post-transcriptionally modified D)it binds to transcription factors 7. 5'-TTA-3' on the template strand would encode the message___?___during translation.

1. Which of the following statements are true? Select all that apply. Select one or more:...

1. Which of the following statements are true? Select all that apply. Select one or more: a. Earnings per share is calculated by dividing retained earnings by the number of shares of common stock outstanding. b. The creditors of a firm must be satisfied before any earnings can be distributed to the common shareholders. c. When referring to ratio comparisons, time-series analysis compares a firm to that of an industry leader. d. The operating profit margin must take into account...

Subjects