31. State the reason that goodwill is not amortized as some other intangible assets are.
32. Why do some say that the GAAP treatment of research and development puts the US at a competitive disadvantage compared to businesses in other countries?
33. Explain how a choice of depreciation methods will have an impact on financial performance measures. Give one example.
Multiple Choice Questions
34. Which of the following would be classified as a tangible asset?
A. Land.
B. Goodwill.
C. Copyright.
D. Trademark.
35. Which of the following would be classified as a long-term operational asset?
A. Notes receivable.
B. Trademark.
C. Inventory.
D. Accounts receivable.
36. Which of the following would
not
be classified as a tangible long-term asset?
A. Delivery truck
B. Timber reserve
C. Land
D. Copyright
37. Which of the following is
not
classified as property, plant and equipment?
A. Computers
B. Buildings
C. Land
D. Office furniture
38. Which of the following terms is used to identify the process of expense recognition for property, plant and equipment?
A. Amortization
B. Depreciation
C. Depletion
D. Revision
39. Which of the following intangible assets does
not
convey a specific legal right or privilege?
A. Copyrights
B. Franchises
C. Goodwill
D. Trademarks
40. What value will be recorded for the building?
A. $175,000
B. $950,000
C. $800,000
D. $1,100,000