Fundamental Accounting Principles Volume 2 17th Edition By Kermit D. Larson test bank

194)       When assigning values to an exchange of assets you should always use the fair value of the asset received.

       ⊚   true
       ⊚   false









195)       A patent is an exclusive right granted to its owner to manufacture and sell a patented machine or device, or to use a process, for a specified period of time.

       ⊚   true
       ⊚   false









196)       Intangible assets should be amortized over their anticipated legal, regulatory, contractual, competitive or economic life.

       ⊚   true
       ⊚   false









197)       Amortization is the process of allocating the cost of intangibles over their estimated useful life.

       ⊚   true
       ⊚   false









198)       Drilling rights are legal permissions to extract natural resources from the earth and are treated as intangible assets.

       ⊚   true
       ⊚   false









199)       Intangible assets provide rights, privileges, and competitive advantages to the owner, are used in operations, and have no physical substance and can be amortized

       ⊚   true
       ⊚   false









200)       A copyright gives its owner the exclusive right to publish and sell a musical, literary, or artistic work during the life of the creator plus 20 years.

       ⊚   true
       ⊚   false









201)       The cost of developing, maintaining, or enhancing the value of a trademark is capitalized, or added to the value of the asset when incurred.

       ⊚   true
       ⊚   false









202)       Goodwill is an intangible asset.

       ⊚   true
       ⊚   false









203)       Goodwill is not depreciated or amortized but is instead decreased only if its value has been determined by management to be impaired.

       ⊚   true
       ⊚   false









204)       Goodwill is depreciated over its useful life as estimated by the business's management.

       ⊚   true
       ⊚   false









205)       Goodwill is written down to its fair value if the fair value is less than its carrying value.

       ⊚   true
       ⊚   false









206)       The impairment of goodwill appears directly on the statement of changes in equity and not on the income statement.

       ⊚   true
       ⊚   false









207)       A machine originally had an estimated useful life of 9 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 13 years. At that point the remaining cost to be depreciated should be allocated over the remaining:



      
       A) 10 years.