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

       C) Is an exclusive right granted to its owner to manufacture and sell a machine or device, or to use a process, for 50 years
       D) The amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately
       E) Gives the owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 20 years
      






45)  A copyright

      
       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
       C) Is an exclusive right granted to its owner to manufacture and sell a machine or device, or to use a process, for 50 years
       D) The amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately
       E) Gives the owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 20 years
      






46)  Capital cost allowance

      
       A) Is the income tax act equivalent of depreciation 
       B) Is acceptable for financial reporting
       C) Is not required for tax reporting
       D) Is not used in Canada
       E) All of these
      






47)  Depreciation

      
       A) Measures the decline in market value of an asset
       B) Measures physical deterioration of an asset
       C) Is the process of allocating to expense the cost of property, plant and equipment
       D) Is a cause of obsolescence
       E) All of these
      






48)  SportsWorld paid $140,000 for a property. The property included land appraised at $67,500, land improvements appraised at $25,000, and a building appraised at $55,500. What should be the allocation of costs in the accounting records (round calculations to 3 decimals)?

      
       A) Land $62,000; land improvements, $23,000; building, $45,000     
       B) Land $62,000; land improvements, $23,800; building, $46,200
       C) Land $63,840; land improvements, $23,660; building, $52,500
       D) Land $79,500; land improvements, $32,600; building, $47,700
       E) Land $87,500; land improvements; $35,000; building; $52,500
      






49)  Property, plant and equipment are

      
       A) Tangible assets used in the operation of a business having a useful life of more than one accounting period    
       B) Current assets
       C) Long-term investments
       D) Intangible assets used in the operations of a business having a useful life of more than one accounting period
       E) Tangible assets used in the operation of business having a useful life of less than one accounting period
      






50)  Treating low-cost asset purchases as expenses is allowed by which principle?

      
       A) Cost
       B) Prudence
       C) Materiality
       D) Matching
       E) Timeliness
      






51)  The useful life of a property, plant and equipment asset is