devry acct305 week 2 quiz

Week 2 : Operational Assets—Intangibles and
Research/Development – Quiz
1. (TCO 2) An exclusive 20-year right to manufacture a
product or use a process is a (Points : 4)
patent.
copyright.
trademark.
franchise.

2. (TCO 2) Our company purchased all of the outstanding
stock of another company, paying $2,700,000 cash. Our company assumed all of
the liabilities of other company. Book values and fair values of acquired
assets and liabilities were as follows.

Book Value Fair Value
Current assets, net
$ 420,000 $ 450,000
Property, plant and equpment, net $ 1,600,000 $
2,250,000
Liabilities
$ 500,000 $ 600,000

Our company would
record goodwill of (Points : 4)
$1,180,000.
$600,000.
$880,000.
$100,000.

3. (TCO 2) Software development costs are capitalized if
they are incurred (Points : 4)
prior to the
point at which technological feasibility has been established.
after
commercial production has begun.
after
technological feasibility has been established but prior to the product
availability date.
None of the
above

4. (TCO 2) Under U.S. GAAP, research expenditures are
(Points : 4)
expensed in the
period incurred.
expensed in the
period they are determined to be unsuccessful.
capitalized if
certain criteria are met.
expensed if
unsuccessful, capitalized if successful.

5. (TCO 2) Goodwill has (Points : 4)
a life of 70
years.
an indefinite
life.
a life of 20
years.
a life of 40
years.