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Intermediate Accounting Exam 5
Intermediate Accounting Exam 5
General Rule: Please, read all the questions properly, observe carefully the problems, and answer the
following with intelligence. You must put your solutions at the back of the paper, which is written clearly and
readable. WARNING! Cheating is not allowed, being caught on act of cheating that person/s will face a great
consequence. (10 Points)
1. The recognition criteria for an intangible asset include which of the following conditions?
I. It must be measured at cost.
II. Its cost can be measured reliably.
III. It is probable that future economic benefits will arise from its use.
A. I, II and III C. I and III only
B. I and II only D. II and III only
5. The cost of a separately acquired intangible asset comprises its purchase price, including import duties and
nonrefundable purchase taxes, and
A. Costs of introducing a new product or service
B. Cost of conducting a business in a new location
C. Administration and other general overhead costs
D. Directly attributable costs of preparing the asset for its intended use.