ACCT Chapter 11 and 12

trade names and trademarks, newspaper masthead, internet domain names, non competition agreements are all examples of:
Marketing Related Intangibles
Customer lists, production backlogs, customer relationships are all examples of:
Customer Related Intangibles
Copyrights on music, plays, songs are examples of:
Artistic Related Intangibles
Franchise, License, and Permit are all examples of:
Contract Related Intangibles
How long does a copyright last:
life plus 70 years
Patents are an example of what kind of intangibles:
Technology Related Intangibles
Recorded only when an entire business is purchased. Not amortized.
Amount by which carrying amounts exceeds its fair value
Impairment Loss
Where is impairment loss recorded?
On Income statement in other expenses and losses section
Once an impairment has been recorded, the reduced carrying amount of an asset held for use becomes its new:
Cost basis
Assets being held for disposal are NOT:
All R&D costs are to be charged to:
expense when incurred
Start up costs are to be charged to:
Expense when incurred
Costs incurred internallyto create intangibles are to be:
Expense when incurred
For Indefinite Intangibles, on the __________________ test is employed,
fair value
What is not a factor in determining Useful life of intangibles:
Salvage Value
What kind of purchase should be recognized as an extraordinary gain:
Bargain Purchase
If legal life is less the useful life then use:
legal life
Where is the disclosure of the amortization expense for the next 5 years reported?
Balance sheet
accounting process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods that benefit from use of the asset
total depreciation from assets per year/ total costs of assets
Composite rate
Depreciable bases/total costs
composite life
Depreciation Expense reduces:
Net Income
A recovery of a loss is only allowed if an asset is:
held for sale
Is depreciation a valuation or cost allocation?
Cost allocation
Intangibles are recorded at:
Which type of intangible is not amortized:
indefinite life
The amount that should be amortized is:
cost- residual value
entry to amortize a patent:
Amortization Expense
Is drafting and design equipment is not a:
organization cost
Entry for organization expense:
Organization expense
Entry to recover loss on impairment:
Recovery of loss from impairment