Luke Hodges
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Luke Hodges
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ACC210 Financial Accounting: Week 4, Intangibles, Quiz 1.2

Question 1 of 11

1

Once an intangible asset has been acquired and made ready for use, any subsequent expenditure will be expensed unless:

Select one of the following:

  • The expenditure is of an external nature

  • It is virtually certain that the expenditure will increase the future economic benefits embodied in the asset

  • The expenditure can be measured reliably and directly attributed to the asset

  • None of the above

Explanation

Question 2 of 11

1


For which intangible can costs written off in one period be reinstated in a subsequent period, if recognition and measurement factors change?

Select one of the following:

  • Goodwill

  • Unidentifiable intangibles

  • Development costs

  • No intangibles

Explanation

Question 3 of 11

1

Expenditure on certain internally generated identifiable intangibles is specifically excluded from being recognised as intangible assets. Which of the following are not specifically identified?

Select one of the following:

  • Brand names

  • Mastheads

  • Copyright

  • Customer lists

Explanation

Question 4 of 11

1

The life of an intangible asset is expressed in terms of which of the following?

Select one of the following:

  • Entity life

  • Economic life

  • Useful life

  • Legal life

Explanation

Question 5 of 11

1

In amortising identifiable intangibles, what factor(s) should be reviewed on an annual basis?

Select one of the following:

  • Commercial life

  • Amortisable (depreciable) amount

  • Cost consumption pattern (amortisation method)

  • All of the above

Explanation

Question 6 of 11

1

Where an intangible asset is considered to have an __________________ life, there is no requirement to amortise the asset. What is the missing term based on AASB 138?

Select one of the following:

  • Infinite

  • Indefinite

  • Material

  • Unlimited

Explanation

Question 7 of 11

1

Under AASB 138, the residual value of an identifiable intangible is assumed to be zero unless certain conditions are met. Which of the following represents one of those conditions?

Select one of the following:

  • There is a commitment by a third party to purchase the asset at the end of its useful life.

  • The residual amount can be determined by reference to an active market that probably will still be in existence at the end of the asset's useful life.

  • Both 1 and 2.

  • Either 1 or 2.

Explanation

Question 8 of 11

1

Which of the following statements is correct in relation to the impairment test for identifiable intangibles?

Select one of the following:

  • It relates to identifiable intangible assets deemed to have an infinite life.

  • It relates to all identifiable intangible assets.

  • It applies where an asset's carrying amount exceeds its fair value.

  • It applies where an asset's recoverable amount exceeds its carrying amount.

Explanation

Question 9 of 11

1

In relation to the amortisation of deferred development expenditure, which of the following applies under AASB 138?

Select one of the following:

  • The amortisation period is a maximum of 20 years.

  • The straight-line method of amortisation must be used.

  • The amortisation shall reflect the pattern of economic benefits consumed.

  • It commences with commercial production of the product resulting from research and development.

Explanation

Question 10 of 11

1

Complete the following definition of an 'active market' from AASB 138: 'A market exhibiting all of the following: the items traded are ____________; ___________ buyers and sellers can normally be found; and prices are _________ available.'

Select one of the following:

  • homogeneous; willing; publicly

  • material; knowledgeable; readily

  • heterogeneous; numerous; always

  • equivalent; sufficient; privately

Explanation

Question 11 of 11

1

Can intangible assets be revalued under AASB 138?

Select one of the following:

  • No.

  • Yes, if they are classified as identifiable.

  • Yes, if they are externally acquired.

  • Yes, if they are externally acquired and there is an active market.

Explanation

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