Quiz on Intangible Assets

What is a characteristic of intangible assets?

• They are normally classified as non-current assets.

• They are monetary assets.

• They have physical existence.

• They are always short-term assets.

How are purchased intangibles recorded?

• At fair value.

• At cost, including acquisition costs.

• At a discounted rate.

• At market value.

What must companies do with limited-life intangibles annually?

• Evaluate them for impairment.

• Amortize them.

• Revalue them.

• Sell them.

Which of the following is an example of marketing-related intangible assets?

• Franchise agreements.

• Trademarks.

• Customer lists.

• Patents.

What is the amortization method for limited-life intangibles?

• Amortized based on market value.

• Not amortized at all.

• Amortized over legal life only.

• Amortized over useful life.

Goodwill is recorded when:

• A single asset is purchased.

• A business is purchased.

• An intangible asset is created.

• A patent is acquired.

What happens to goodwill when it is impaired?

• It is written off.

• It is sold.

• It is amortized.

• It is revalued.

Which of the following is NOT a type of intangible asset?

• Trademarks.

• Patents.

• Goodwill.

• Land.

What is the treatment for research costs in R&D?

• They are amortized.

• They are deferred.

• They are expensed as incurred.

• They are capitalized.

What is the maximum legal life for a patent?

• Indefinite.

• 30 years.

• 20 years.

• 10 years.