8.6 Account for intangible assets
1) The process of allocating the cost of intangible assets to expense is called amortization.
2) Amortization is computed over the useful life of the intangible asset using the double-declining-balance method.
3) Instead of using an accumulated amortization account similar to accumulated depreciation, the expense of amortization is directly credited to the intangible asset itself.
4) The slogan "Can you hear me now?" for Verizon is a protected slogan called a:
A) patent.
B) copyright.
C) trademark.
D) brand name.
E) licenses.
5) Which of the following are generally rendered obsolete because of technological advancements?
A) Patent
B) Copyright
C) Franchise
D) Goodwill
E) Licenses.
6) Levi's would be an example of a:
A) trademark.
B) copyright.
C) brand name.
D) patent.
E) goodwill.
7) The Toronto Blue Jays is an example of a:
A) copyrighted team.
B) trademarked team.
C) franchised team.
D) patented team.
E) licensed team.
8) Goodwill is:
A) amortized every year.
B) recorded as a gain only when the goodwill is gaining value.
C) recorded as a loss only when the goodwill is losing value.
D) amortized like other intangible assets.
E) recorded as a loss every year instead of recording amortization.
9) How are research and development costs (R&D) generally recorded?
10) Patents to produce and sell inventions are conveyed by the federal government for a period of __________.