Question 1 (2 points) When a company develops a trademark the costs directly rel

Question

Question 1 (2 points)

When a company develops a trademark the costs directly related to securing, it should generally be capitalized. Which of the following costs associated with a trademark would not be allowed to be capitalized?

Question 1 options:

Attorney fees

Consulting fees

Research and development fees

Design costs

Question 2 (2 points)

When developing computer software to be sold, which of the following costs should be capitalized?

Question 2 options:

Designing

Coding

Testing

None of the above

Question 3 (2 points)

Which of the following costs of goodwill should be amortized over their estimated useful lives?

Question 3 options:

Neither costs of goodwill from a business combination nor costs of developing goodwill internally

Not costs of goodwill from a business combination but costs of developing goodwill internally

Both costs of goodwill from a business combination and costs of developing goodwill internally

Costs of goodwill from a business combination but costs of developing goodwill internally

Question 4 (2 points)

Purchased goodwill should ________.

Question 4 options:

be written off as soon as possible against retained earnings

be written off as soon as possible as an extraordinary item

be written off by systematic charges as a regular operating expense over the period benefited

not be amortized

Question 5 (2 points)

Which of the following principles best describes the current method of accounting for research and development costs?

Question 5 options:

Associating cause and effect

Systematic and rational allocation

Income tax minimization

Immediate recognition as an expense

Attorney fees

Consulting fees

Research and development fees

Design costs

Explanation / Answer

1.Research and development fees

2.None of the above

3.Neither goodwill purchased or developed internally is amortized.

4.not be amortized

5.Immediate recognition as an expense

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