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

       E) All of the choices are correct
      






37)  The appropriate way to amortize goodwill is

      
       A) Straight-line over a maximum of 40 years    
       B) Straight-line over a maximum of 20 years
       C) Double-declining-balance over a period not to exceed 20 years
       D) Over the estimated useful life of the goodwill
       E) Goodwill is not amortized or depreciated
      






38)  Legal permissions for the extraction of oil and gas from the earth are known as

      
       A) Trademarks  
       B) Patents
       C) Drilling rights
       D) Copyrights
       E) Leaseholds
      






39)  An asset can be disposed of by

      
       A) Discarding    
       B) Selling
       C) Exchanging
       D) Donating it to charity
       E) All of these
      






40)  Revenue expenditures

      
       A) Are additional costs related to property, plant and equipment that do not materially increase the asset's life 
       B) Are balance sheet expenditures
       C) Extend the asset's useful life
       D) Benefit future periods
       E) Are debited to asset accounts
      






41)  Depreciation is usually recorded

      
       A) From the beginning of the accounting year in which an asset is purchased  
       B) From the actual date of purchase
       C) From the first of the month nearest the actual purchase date
       D) From the end of the month nearest the actual purchase date
       E) By any of the above methods
      






42)  Land improvements are

      
       A) Assets that increase the usefulness of land, but that have a limited useful life    
       B) Assets that increase the usefulness of land, and like land are not depreciated
       C) Included in the land account
       D) Expensed in the period incurred
       E) Never depreciated
      






43)  Which of the following statements is true with respect to intangible assets?

      
       A) Goodwill is an intangible asset that is amortized and tested for impairment.
       B) Intangible assets are amortized over a period of 50 years.
       C) Intangible assets should be evaluated each year to determine if there has been any impairment in their value.
       D) Intangible assets are expensed to income in the year they are acquired.
       E) An intangible asset is recorded at market value when the asset is acquired.
      






44)  A patent

      
       A) Gives the owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 50 years
       B) Is an exclusive right granted to its owner to manufacture and sell a machine or device, or to use a process, for 20 years