ACCT 305 Week 2 Quiz
- Question : (TCO 2) An exclusive 20-year right to manufacture a product or use a process is
- Question: (TCO 2) Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were:
The journal entry to record this acquisition would include a:
- Debit to Cash in the amount of $875,000
- Credit to Cash in the amount of $950,000
- Debit to Goodwill in the amount of $350,000
- Debit to liabilities in the amount of $175,000
- Question : (TCO 2) Software development costs are capitalized if they are incurred:
- Prior to the point at which technological feasibility has been established.
- After commercial production has begun.
- After technological feasibility has been established but prior to the product availability date.
- None of the above is correct.
- Question : (TCO 2) Under U.S. GAAP, research expenditures are:
- Expensed in the period incurred.
- Expensed in the period they are determined to be unsuccessful.
- Capitalized if certain criteria are met.
- Expensed if unsuccessful, capitalized if successful.
- Question : (TCO 2) Goodwill has:
- A life of seventy years.
- An indefinite life.
- A life of twenty years.
- A life of forty years.