Intermediate Accounting II -Quiz 2

Intermediate Accounting II -Quiz 2 - Intermediate...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 2, date Group Name: Kramer Service Corporation bought a building lot to construct a new corporate office building. An older home on the building lot was razed immediately so that the office building could be constructed. The cost of purchasing the older home should be a. recorded as part of the cost of the land. b. written off as a loss in the year of purchase. c. written off as an extraordinary item in the year of purchase. d. recorded as part of the cost of the new building. The term “intangible assets” is used in accounting to denote a. current or noncurrent property items without physical characteristics. b. assets with lesser economic significance because of the nature of such assets. c. properties without physical characteristics that have long-term effects on a business enterprise. d. such items as patents, copyrights, and claims against customers which can be valued on a monetary basis. Which of the following intangible assets does not have the characteristic of LO exchangeability? a. Patent b. Copyright c. Goodwill d. Franchise In a business combination, goodwill is defined as the excess of cost over the a. fair value of assets acquired. b. fair value of assets acquired less the liabilities assumed. c. book value of assets acquired less the liabilities assumed. d. net book value of assets acquired. Goodwill should be recorded in the accounting records only when a. it is purchased from another company. b. it can be established that a definite benefit or advantage has resulted to a firm from some item such as a good name, capable staff, or reputation. c.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Intermediate Accounting II -Quiz 2 - Intermediate...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online