Ac 551 wk 1 quiz

AC 551 Wk 1 Quiz
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1. Question : (TCO C) Intangible assets are reported on the balance sheet Student Answer: with an accumulated depreciation account.   in the property, plant, and equipment section.   separately from other assets.   None of the above Instructor Explanation: Proper classification under U.S. GAAP. Chapter 12 Points Received: 4 of 4  Comments: 2. Question : (TCO C) Which of the following is often reported as an extraordinary item? Student Answer: Amortization expense   Impairment losses for intangible assets   Research and development costs   None of the above Instructor Explanation: None of the items qualify as extraordinary items, which are rare. Amortization, impairment losses, and research and development are normal transactions in an operating business. Chapter 12 Points Received: 4 of 4  Comments:
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3. Question : (TCO C) Alonzo Co. acquires three patents from Shaq Corp. for a total of $360,000. The patents were carried on Shaq’s books as follows: Patent AA, $5,000; Patent BB, $2,000; and Patent CC, $3,000. When
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