Luke Hodges
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Luke Hodges
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ACC210 Financial Accounting: Week 4, Intangibles, Quiz 1.1

Question 1 of 10

1

How are intangible assets normally defined?

Select one of the following:

  • As rights

  • As non-monetary and without physical substance

  • As non-current and without physical substance

  • None of the above

Explanation

Question 2 of 10

1

Which of the following does not belong with the others?

Select one of the following:

  • Patent

  • Copyright

  • Goodwill

  • Trademark

Explanation

Question 3 of 10

1

Internal expenditure related to the development of which of the following intangible assets can be capitalised rather than expensed?

Select one of the following:

  • Goodwill

  • Patents

  • Brand names

  • R&D

Explanation

Question 4 of 10

1

Which of the following factors would you not associate with goodwill?

Select one of the following:

  • Loyal customers

  • Established reputation

  • Quality employees

  • Location

Explanation

Question 5 of 10

1

Complete the definition of an intangible asset:'an __________ non-__________ asset without __________ substance'.

Select one of the following:

  • unidentifiable; current; tangible

  • identifiable; physical; real

  • identifiable; monetary; physical

  • None of the above

Explanation

Question 6 of 10

1

To be classified as an 'identifiable intangible' requires the asset to be separable. Separable means being capable of being separated or divided and being sold. Apart from sale, a number of other possibilities are listed in the standard. Which of the following is not one of these?

Select one of the following:

  • Leased

  • Transferred

  • Licensed

  • Rented

Explanation

Question 7 of 10

1

AASB 138 requires 'separable' intangible assets to be recognised in the balance sheet. Complete the following definition of 'separable': 'Separable means that the organisation could ________, sell, exchange or distribute the specific future economic benefits attributable to the asset without also ________ future economic benefits that ______ from other assets used in the same revenue-earning activity.'

Select one of the following:

  • hire; realising the; arise

  • rent; disposing of; flow

  • lease; recognising the; are derived

  • appropriate; accounting for the; emanate

Explanation

Question 8 of 10

1

The formation or start-up costs of an organisation would not be shown as an asset under the new accounting standard based on what grounds?

Select one of the following:

  • Failure to meet the 'separable' test

  • The absence of control

  • The lack of a reliable measurement

  • On the grounds that the future economic benefits will probably not arise

Explanation

Question 9 of 10

1

In terms of the life of intangible assets, they are classified as either having a finite or an __________ life. What is the missing term?

Select one of the following:

  • Infinite

  • Indefinite

  • Extended

  • Unlimited

Explanation

Question 10 of 10

1


For intangible assets, they may be recognised only where there is an 'associated' cost. Which of the following would not normally be considered an 'associated' cost?

Select one of the following:

  • Purchase price

  • Import duties

  • Employee costs associated with work undertaken to get the asset ready for use

  • Advertising costs

Explanation

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