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

       D) Machinery and equipment
       E) All of the choices are correct
      






29)  Intangible assets

      
       A) Are rights, privileges, and competitive advantages to the owner, used in operations, having no physical substance   
       B) Include patents, leaseholds, and land improvements
       C) Can be amortized
       D) Are rights, privileges, and competitive advantages to the owner, used in operations, having no physical substance and can be amortized
       E) All of the choices are correct
      






30)  Additional subsequent expenditures that result in future economic benefits and can be reliably measured should be treated as a(n)

      
       A) Revenue expenditure  
       B) Asset expenditure
       C) Capital expenditure
       D) Contributed capital expenditure
       E) Balance sheet expenditure
      






31)  Factor(s) that might limit an intangible asset's useful life include

      
       A) Legal      
       B) Regulatory
       C) Contractual
       D) Economic
       E) All of the choices are correct
      






32)  The cost of land can include

      
       A) Purchase price     
       B) Back property taxes
       C) Costs of removing existing buildings
       D) Real estate commissions
       E) All of the choices are correct
      






33)  Each year goodwill is examined to see if its value has been impaired. If the value has been impaired goodwill will

      
       A) Increase 
       B) Not change
       C) Decrease
       D) Be amortized
       E) Be depreciated
      






34)  The formula for calculating straight-line depreciation is

      
       A) Depreciable cost divided by the useful life in years   
       B) Cost plus residual value divided by the useful life in years
       C) Depreciable cost divided by useful life in units
       D) Cost divided by useful life in years
       E) Cost divided by useful life in units
      






35)  Ordinary repairs

      
       A) Are expenditures to keep an asset in normal operating condition   
       B) Do not extend an asset's useful life
       C) Do not materially increase the asset's life or productive capabilities
       D) Maintain an asset
       E) All of these
      






36)  The straight-line method and the double-declining-balance method of depreciation

      
       A) Produce the same total depreciation over an asset's useful life
       B) Allocate an asset's cost in a systematic and rational manner
       C) Do not produce the same book value each year
       D) Are both acceptable for GAAP