Question Details

Which of the following is not an intangible asset that is reported on the balance sheet



1.	Research costs
		a.	are classified as intangible assets.
		b.	must be expensed when incurred under generally accepted accounting principles.
		c.	should be included in the cost of the patent they relate to.
		d.	are capitalized and then amortized over a period not to exceed 40 years.

	2.	A computer company has $3,000,000 in development costs relating to successful research. Before accounting for these costs, the net income of the company is $2,200,000. What is the amount of net income or loss after these research and development costs are accounted for?
		a.	$0.
		b.	$2,200,000 net income.
		c.	$800,000 loss.
		d.	Cannot be determined from the information provided.

3.	Goodwill
		a.	may be expensed upon purchase if desired.
		b.	can be sold by itself to another company.
		c.	can be purchased and charged directly to owner- equity.
		d.	is viewed as expected earnings in excess of normal earnings.

	4.	Which of the following is not an intangible asset that is reported on the balance sheet?
		a.	Goodwill
		b.	Trademarks
		c.	Employees
		d.	Copyrights
	5.	Natural resources are generally shown on the balance sheet under
		a.	Intangibles.
		b.	Investments.
		c.	Property, Plant, and Equipment.
		d.	Owner's Equity.



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