Which of the following is considered an intangible asset?
a) Land
b) Machinery
c) Trademark
d) Inventory
Intangible assets are reported on the balance sheet under:
a) Current Assets
b) Fixed Assets
c) Long-term Assets
d) Equity
Which of the following intangible assets is NOT amortized?
a) Goodwill
b) Patent
c) Copyright
d) Trademark with limited life
The process of allocating the cost of an intangible asset over its useful life is called:
a) Depreciation
b) Amortization
c) Depletion
d) Appreciation
Goodwill arises when:
a) A company purchases another company for more than its net assets
b) A company invests in securities
c) A company issues shares at a premium
d) A company records an expense
Which accounting standard governs the treatment of intangible assets?
a) IAS 16
b) IAS 38
c) IAS 2
d) IFRS 9
Research costs should be:
a) Capitalized as an asset
b) Expensed when incurred
c) Deferred to future periods
d) Recorded as goodwill
Which of the following is NOT an internally generated intangible asset?
a) Goodwill
b) Patent developed in-house
c) Customer list developed by the company
d) Purchased trademark
Which intangible asset is protected by law for a fixed period?
a) Goodwill
b) Patent
c) Land
d) Inventory
If an intangible asset has an indefinite useful life, it should be:
a) Amortized annually
b) Depreciated like a fixed asset
c) Tested for impairment annually
d) Expensed when acquired
Which of the following is NOT an intangible asset?
a) Copyright
b) Patent
c) Inventory
d) Brand Name
Which intangible asset is related to exclusive rights over artistic works?
a) Patent
b) Copyright
c) Goodwill
d) Franchise
Which of the following is a characteristic of intangible assets?
a) They have a physical presence
b) They generate future economic benefits
c) They cannot be sold separately
d) They are classified as liabilities
A company acquires a patent for $500,000 with a useful life of 10 years. What is the annual amortization expense?
a) $10,000
b) $50,000
c) $100,000
d) $500,000
Which of the following statements about goodwill is TRUE?
a) Goodwill is amortized over its useful life
b) Goodwill is recorded only when purchased
c) Goodwill is classified as a liability
d) Goodwill is a tangible asset
Franchises are classified as:
a) Tangible Assets
b) Current Assets
c) Intangible Assets
d) Long-term Liabilities
The cost of acquiring a trademark should be:
a) Expensed immediately
b) Amortized over its useful life
c) Ignored in financial statements
d) Treated as revenue
Which method is commonly used to amortize intangible assets?
a) Straight-line method
b) Reducing balance method
c) Units of production method
d) Double declining balance method
An intangible asset should be recognized when:
a) It is acquired in a business combination
b) Future economic benefits are probable
c) Its cost can be measured reliably
d) All of the above
Which of the following is NOT subject to amortization?
a) A patent with a 20-year legal life
b) A trademark with an indefinite useful life
c) A software license for 5 years
d) A customer list acquired in a merger
Impairment testing of intangible assets is required when:
a) There is an indication of impairment
b) Every month
c) Only when the company makes a loss
d) Only when an asset is sold
Which expense is associated with intangible assets?
a) Depreciation
b) Amortization
c) Depletion
d) Accrual
Which of the following intangible assets is renewable indefinitely?
a) Patent
b) Copyright
c) Trademark
d) Franchise
A license granted by the government to operate a business is classified as:
a) Tangible Asset
b) Current Asset
c) Intangible Asset
d) Equity
Which intangible asset is associated with the right to use a business model?
a) Patent
b) Copyright
c) Franchise
d) Goodwill
Which cost is included in the initial recognition of an intangible asset?
a) Purchase price
b) Legal fees
c) Registration costs
d) All of the above
Which of the following is NOT an example of an intangible asset?
a) Brand Recognition
b) Copyright
c) Equipment
d) Trade Secret
Which intangible asset grants exclusive rights to sell a product or service?
a) Copyright
b) Franchise
c) Goodwill
d) Land
