Intangible assets are amortized when: There is no more depreciation available to take. It has a finite life. It has an infinite life. The value has been impaired.

Allocating the cost of a natural resource to the units removed is called amortization. True False 2.Costs incurred to acquire long-lived assets are capital expenditures. True False 3.Accumulated depreciation, as used in accounting, may be defined as: o An expense of doing business. o Funds (or cash) set aside to replace the asset being depreciated. o portion of the cost of plant asset recognized as expense since asset was acquired. o Earnings retained in the business.4.  On January 1, 1999, Ubot Inc. purchased a piece of equipment for $60,000. It is estimated to have an economic life of 5 years and a salvage value of $10,000. The 200% declining-balance method for depreciation is used. What is the book value of the asset at the end of year 2000 ? A. o $24,000 B. o $40,000 C. o $36,000 D. o $21,600 5.It is not necessary to disclose the maturity dates of long-term obligations on the financial statements. True False   6.The…

TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.

TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

Depreciation refers to a) Decrease in the value of Tangible Fixed Assets b) Decrease in the value of Intangible Fixed Assets c) Decrease in the natural resources d) None of the above

Intangibles have either a limited useful life or an indefiniteuseful life. How should these two different types ofintangibles be amortized?

Which of the following statements is FALSE? Some intangible assets are not required to be amortized. Research and development expenditures are expensed as incurred because of the uncertainty regarding their future cash flows. Amortization expense is generally recorded with a credit to the Accumulated Amortization account. Internally generated goodwill is not capitalized in the accounts.

Which statement concerning depreciation is false? a.The only property that has a determinable life is depreciable.   B.Land is not depreciable.   C.Intangible assets' capital costs are recovered through amortization, much like depreciation.   D.Personal property converted to business use is not depreciable since it was once used for personal purposes.

The book value (carrying amount) of a fixed asset (plant, property, and equipment) is equal to its cost less accumulated depreciation. cost less depreciation expense. fair market value less accumulated depreciation. cost less scrap value.

Which of the following statements is false? A.For a self constructed asset, capitalized interest should never exceed actual interest cost. B.A loss on exchange will always be recognized regardless of commercial substance. C.The cost to build an addition to an existing building should be expensed immediately. D.If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered.