Question

true or false

1.) Goodwill is recorded only when the purchase price exceeds the market value of the net liabilities in the acquisition of another company.

1.a) Most intangible assets have a residual value.

1.b) Adoption of IFRS by U.S. companies is expected to result in the recognition of less intangible assets on their balance sheets than presently exist.

1.c) Patents are state government grants that give the holder the exclusive right to produce and sell an invention for 20 years.

1.d)) The useful lives of many franchises are indefinite and therefore are not amortized.

1.e) Some trademarks have an indefinite life and should not be amortized.

Answer 1

1. 1.) Goodwill is recorded only when the purchase price exceeds the market value of the net liabilities in the acquisition of another company.

Ans- TRUE

1a .Most intangible assets have a residual value.

Ans- FALSE

1b. Adoption of IFRS by U.S. companies is expected to result in the recognition of less intangible assets on their balance sheets than presently exist.

Ans- TRUE

1c. Patents are state government grants that give the holder the exclusive right to produce and sell an invention for 20 years.

Ans- FALSE

1d. Patents are state government grants that give the holder the exclusive right to produce and sell an invention for 20 years.

Ans- TRUE

1e. Some trademarks have an indefinite life and should not be amortized.

Ans- TRUE

1c. FALSE

1d. TRUE

1e. TRUE