Which of the following does not belong with the others?
Answer
Patent
Copyright
Goodwill
Trademark
Question 3
Question
Internal expenditure related to the development of which of the following intangible assets can be capitalised rather than expensed?
Answer
Goodwill
Patents
Brand names
R&D
Question 4
Question
Which of the following factors would you not associate with goodwill?
Answer
Loyal customers
Established reputation
Quality employees
Location
Question 5
Question
Complete the definition of an intangible asset:'an __________ non-__________ asset without __________ substance'.
Answer
unidentifiable; current; tangible
identifiable; physical; real
identifiable; monetary; physical
None of the above
Question 6
Question
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?
Answer
Leased
Transferred
Licensed
Rented
Question 7
Question
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.'
Answer
hire; realising the; arise
rent; disposing of; flow
lease; recognising the; are derived
appropriate; accounting for the; emanate
Question 8
Question
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?
Answer
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
Question 9
Question
In terms of the life of intangible assets, they are classified as either having a finite or an __________ life. What is the missing term?
Answer
Infinite
Indefinite
Extended
Unlimited
Question 10
Question
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?
Answer
Purchase price
Import duties
Employee costs associated with work undertaken to get the asset ready for use