‘014/22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties ACC309_Quiz 01 Intangible Assets and Current Liabilities Total points Qe The respondent's email (20-5201 1 @g.batstate-u.edu.ph) was recorded on submission of this form Block * BSMA3108 ¥ Name- BSMA3101 * Choose ¥ Name- BSMA3102 * Choose ¥ hitpsildocs. google. comformsel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QUJZOMW.OWaviewscore?ver0&em08W=18fI=08vie... 1/9to14i22, 10:09 AM Name- BSMA3103 * Choose BSMA3 04 Name- BSMA3104 * Choose BSMA3105, Name- BSMA3105 * Choose BSMA3106 Name-BSMA 3106 * Choose BSMA3107 Name- BSMA3107 * Choose HA easmasi08 ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties . 0 of 0 points . 0 of 0 points . 0 of 0 points | 0 of 0 points . 0 of 0 points hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUktD6y0-0X8BEIHZIH6QUJZOMW.OWaviewscore?ver0&emO8W=18"Ir=08vie... 2/18to14i22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Name- BSMA3108 * DE LEON, KYLA RENZ M. ¥ Multiple Choice- intang ets Theor 11 of 13 points Which condition must be met for an item to be recognized as an intangible 1/1 asset other than goodwill? © The item is nonmonetary, identifiable and lacks physical substance. v © The fair value can be measured reliably. © The item is expected to be used in the production or supply of goods or services. © Theitemis part of an activity almed at gaining new scientific or technical knowledge. Y Anintangible asset is identifiable when wn O tts separable. @ tis either separable or it arises from contractual and other legal right. v CO tis neither separable nor it arises from contractual and other legal right. © ttarises from contractual and other legal right. hitpsildocs. google. comformsel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZAMW.OWa)viewscore?ver0&om08W=18"Ir=08vie... 3/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Y_ Anentity should recognize goodwill at what point? " © Costs have been incurred in the development of goodwill. © The fair value exceeds the carrying amount. © Goodwill has been created in the purchase of a business. v © The entity expects a future benefit from the creation of goodwill. The cost of a separately acquired intangible asset comprises the purchase 1/1 price and © Cost of conducting a business in a new location © Directly attributable cost of preparing the asset for the intended use. v O Adi © Cost of introducing a new product or service istration and other general overhead cost Y_ Anentity should recognize goodwill at what point? in © The fair value exceeds the carrying amount. © Goodwill has been created in the purchase of a business. v © Costs have been incurred in the development of goodwill. © The entity expects a future benefit from the creation of goodwill hitpsildocs. google. comformsel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&em08W=18"I=08vie... 4/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties X_ Which statement does not accurately describe the accounting for on goodwill? © Goodwill can only be recorded as a result of a business combination. © Goodwill should be examined at least annually for impairment. x © The cost of internally developing goodwill should be recognized as expense as incurred. © Goodwill should be amortized over 40 years. Correct answer © Goodwill should be amortized over 40 years. Which of the following would qualify as an intangible asset? um © Tition fees pad to employees who decide to enroll in an M.B.A program while working with the entity © Advertising and promotion © Operating losses during the initial stages of the project © Legal costs paid to lawyers to register a patent v Y The recognition criteria for an intangible asset include which of the " following conditions? Itis probable that future economic benefit will arise from use. It is probable that future economic benefit will arise from use and the cost can \/ be measured reliably. The intangible asset must be measured at cost, The cost can be measured r O00 @0 bly. hitpsildocs. google. comformsael FAlpOLSfE=n71S 1080H2BUktDSy0-0X6BEIHZIH6QU.JZOMW.OWaviewscore?ver0&em08W=18"Ir=08vie... 5/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Y Which intangible asset should be reported as a separate line item inthe 1/1 statement of financial position? O Patent O Trademark O Franchise © Goodwill v Y Purchased goodwill should "WW CO Be written off as other expense. © Not be amortized. v © Be written off by systematic charge as operating expense over the period benefited. © Be written off against retained earnings. Ina business combination, the excess of cost of purchase over the fair 1/1 value of the identifiable net assets acquired © Abargain purchase CO indirect cost © Other asset © Goodwill v hitpsildocs. google. comformsael FAlpOLSfE=n71S i080H2BUktDSy0-0X6BEIHZIH6QU.JZOMW.OWaviewscore?ver0&o-08W=18"I=08vie... 6/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Y_ Acopyright is an example of which general category of intangible asset? 1/1 © Customer-related O Contract-based O Market-related Artistic-related v x Franchise and broadcast right are examples of which general category of 0/1 intangible asset? O Contract-based © Artistic-related © Marketrelated x © Customer-related Correct answer © Contract-based Multiple Choice- Intangible Assets Problems 3 of 4 points hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&erO8W=18"I=08vie... 7/9to14i22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties X On January 1, 2020, Cecilia Company purchased a patent from an original 0/1 patentee for P3,000,000. The remaining legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2021, the entity paid 550,000 in successfully defending the patent in an infringement suit filed against the entity. On January 1, 2022, the entity acquired a competing patent for 1,500,000. The competing patent has a remaining legal life of 15 years but it is not to be used because it was intended to protect the original patent. What is the carrying amount of the patent on December 31, 20227 © 3,500,000 x © 3,150,000 © 3,600,000 © 3,200,000 Correct answer © 3,600,000 On January 1, 2018, Jericho Company purchased a patent for P7,560,000. 1/1 The patent is being amortized over the remaining legal life of 15 years expiring on January 1, 2033, During 2021, the entity determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported for the patent, net of accumulated amortization, on December 31, 20217 © 4896,000 © 4,282,000 © 5,050,000 @ 5,184,000 v hitpsildocs. google. comformsael FAlpOLSfE=n71S 1080H2BUktDSy0-0X6BEIHZIH6QU.JZOMW.OWaviewscore?ver0&e-08W=18"Ir=08vie... 8/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties v vw Shanette Company incurred research and develo nt costs in the current year as follows: Equipment acquired for use in various research and development projects | 975,000) ~ Depreciation on the above equipment - | 135,000, Materials used a ee ee ~~ 200,000, Compensation costs of personnel $00,000) Outside consulting fees 150,000 Indirect costs appropriatey allocates oe | 280,000 ‘What is the research and Gevelopment excense the current year? © 1,085,000 © 1,235,000 v © 1:825,000 © 850,000 v " anbeth Company made the folowing expenditures réatng to Produet Zee: Legal cos to fle a patent on Product Zee. Production of the rished product would not have been undertaken without the patent togane ‘Special equipment to be used solely for development of Produd Zee, The coca cquipment has no other use and has an esomaced Useful bf of four years ‘i ior and mater costs inaurred m produdng a prototype model 3,000,060, Gost of testing the prototype 800,000 What total amount of costs should be expensed when incired? © 2,950,000 © 2800,000 © 3,400,000 v © 3,500,000 Multiple Choice- Current Liabilities Theories 13 of 17 points hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUkDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?™ver0&er08W=18"I=08vie... 9/19to14i22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Which is a characteristic of a current liability but not a non current liability? 1/1 @ Settlements expected within the normal operating cycle of within 12 months, 7 whichever is longer © Unavoidable obligation CO Present obligation that entails settlement by probable futur transfer of cash, goods or services © The obligating event creating the liability has already occurred X__ What is the relationship between current liabilities and an operating cycle? 0/1 © There is no relationship between the two. © Liauidation of current liaiities is reasonably expected within the operating cycle or one year, whichever is longer © Current liabilities are the result of operating transactions x © Current liabilities cannot exceed the amount incurred in one operating cycle Correct answer @ Lisuidation of current abilities is reasonably expected within the operating cycle or one year, whichever is longer Y_ Itis a marketing scheme whereby an entity grants award credits to Ww customers and the entity can redeem the award credita in exchange for free or discounted goods. © Customer loyalty program Vv © Premium plan O Loyalty award © Marketing program hitpsildocs. google. comformser FAlpOLSfE=n71S 1080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&om08W=18"K=08vl,. 10/18‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties The award credits granted to customers under a customer loyalty program 1/1 is often described as O Royalty O Awards © Points v O Credits Which of the following should be included in current liabilities? "WW © Trade notes payable © Allof these are included in current liabilities v © Unearned revenue © Short-term zero-interest bring note payable Y The most relevant measurement of liabilities at initial recognition and fresh 1/1 start measurement should always reflect, O Historical cost © The expectation of the management © The credit standing of the entity v © The single most likely minimum or maximum possible amount hitpsildocs. google. comformsel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&omO8W=18"K=08v1,.. 11/9‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties YY Magazine subscriptions collected in advance are treated as wy Acontra account to magazine subscriptions receivable Magazine subscription refund in the income statement in the period collected Deferred revenue in the liability section v Oo@®@O0O°0 Deferred revenue in the shareholders equity section When an entity received an advance payment for special order goods that 1/1 are to be manufactured and delivered within six months, the advance payment is reported as Current liability v Deferred charge Contra asset account O00 ®@ Noncurrent liability Y_ Anentity isa retailer of home appliance and offers a service contract on 1/1 each appliance sold. The entity sells appliances on installment contracts but all service contracts must be paid in full at the time of sale. Collections received for service contracts shall be recorded as an increase in Service revenue account Sales contracts receivable valuation account Shareholders’ equity valuation account ®©ooo Deferred revenue account v hitpsildocs. google. comformsael FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&e-O8W=18MK=08vl,.. 12/18‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties VY How would the proceeds received from the advance sale of nonrefundable 1/1 tickets for a theatrical performance reported before the performance © Revenue to the extent of related costs expended © Unearned revenue for the entire proceeds v © Unearned revenue to the extent of related costs expended © Revenue for the entire proceeds Y Which is the correct definition of a provision? WW © Ailiability which cannot be easily measured © An obligation to transfer funds to an entity © Apossible obligation arising from past event © A liability of uncertain timing or amount v X_Aprovision shall be recognized as liability when on © Allof these are required for the recog ‘ion of a provision as liability. © Anentity has a present obligation as a result of a past event. x CO Lis probable that an outflow of resources embodying economic benefits will be required to settle the obligation. © The amount of the obligation can be measured reliably. Correct answer @ Allof these are required for the recognition of a provision as liability. hitpsildocs. google. comformsel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZ-OMW-OWa)viewscore?ver0&omO8W=18"K=08v1,.. 13/18‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties VY When the provision arises from a single obligation, the estimate ofthe 1/1 amount Reflects the weighting of all possible outcomes by their associated probabilities. Is determined as the individual most likely outcome, Midpoint of the possible outcomes. Is the individual most likely outcome adjusted for the effect of other possible 7 outcomes. ©@ooo X_ Which statement is NOT true in relation to the measurement of a on provision? O Where the effect of the time value of money is material, the amount ofa provision shall be the present value of the expenditure expected to settle the obligation The risks and uncertainties that inevitably surround many events and x © circumstances shall be taken into account in reaching the best estimate of a provision. Future events that may affect the amount required to settle the obligation shall be © reflected in the amount of the provision where there is sufficient objective evidence that the future events will occur. CO ans from expected disposal of assets shall be taken into account in measuring a provision. Correct answer @ tits from expected disposal of assets shall be taken Into account in measuring a provision. hitpsildocs. google. comformsel FAlpOLSfE=n71S 1080H2BUKDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&emO8W=18MK=08vl,.. 14/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties X_ Provisions shall be discounted if the effect of the time value of money is 0/1 material. Which of the following is INCORRECT regarding the discount rate? © Does not reflect risks for which future cash flow estimates have been adjusted © Isa post-tax discount rate © Reflects risks specific to the liability © Reflects current market assessment of the time value of money x Correct answer @ |sapost-tax discount rate Y Acontingent liability shall be recognized when " Itis probable that a liability has been incurred even though the amount of the loss cannot be reliably measured. Any lawsuit is actually filed against an entity. The amount of the loss can be reliably measured and itis probable priorto issuance of financial statements than a liability has been incurred O0o@O0O0 It is certain that funds are available to pay the amount of the claim. < Disclosure usually is not required for " Contingent losses that are remote and can be reliably measured. v Contingent gains that are probable and can be reliably measured, Contingent losses that are reasonably possible and cannot be reliably measured O00 ®@ Contingent losses that are probable and cannot be reliably measured. hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUktDSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&omO8W=18MK=08vi,. 15/19‘014/22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties Multiple Choice- Current Liabilities Problems. 2 of 2 points Myles Company owns a car dealership that it uses for servicing cars under 1/1 warranty. In preparing the financial statements, the entity needs to ascertain the provision for warranty that it would be required to recognize at year-end, The entity's experience indicates that 60% of all cars sold in a year have zero defect, 25% of all cars sold in a year have normal defect, and 15% of all cars sold in a year have significant defect. The cost of rectifying a "normal defect" in a car is P10,000. The cost of rectifying a "significant defect" in a car is P30,000. The entity sold 500 cars during the year. What is the "expected value" of the provision for warranty for the current year? © 4,000,000 © 3,500,000 v © 1400,000 © 1750,000 Ronald Company has an incentive compensation plan under which a wm" branch manager received 10% of the branch income after deduction of the bonus but before deduction of income tax. Branch income for the current year before the bonus and income tax was P1,650,000. The tax rate is 30%.What is the bonus for the current year? © 126,000 © 165,000 ©@ 150,000 v © 180,000 Problems-Topsy 2 of 2 points hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUk#DSy0-0X8BEIHZIH6QU.JZOMW.OWaviewscore?ver0&omO8W=18MK=08vi,. 16/19to14i22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties ‘Topsy Company started a new promotional program. For every 10 box tops returned, customers receive a basketball, ‘The entity estimated that only 60% ofthe box tops reaching the market would be redeemed. Units Amount Sales of product 100,000 30,000,000 Basketballs purchased 5500 4,125,000 Basketballs cstrbuted 4,000 VY What is the premium expense for the year? " © 7,500,000 © 1,500,000 © 4,500,000 v © 47125,000 What is the amount of yearend estimated liability associated with this 1/1 promotion? 4,125,000 1,500,000 v 4,500,000 3,000,000 OoO0@°0 Problems-Dean 1 of 1 points hitpsildocs. google. comforms/all FAlpOLSfE=n71S i080H2BUktDSy0-0X6BEIHZIH6QUJZOMW.OWaviewscore?ver0&emO8W=18MK=08v1,.. 17/18to14i22, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties On March 1,2021, a suit was filed against Dean Company for patent infringement. Dean's legal counsel believed an unfavorable outcome is probable and estimated that Dean will have to pay between P850,000 and P900,000 in damages. However, Dean's legal counsel is of the opinion that P600,000 is a better estimate than any than other amount in the range. The situation was unchanged when the December 31, 2021 financial statements were released on February 15, 2022. What amount should be accrued as liability on December 31, 2022 in w"W connection with this suit? © 600,000 v Oo © 900,000 © 500,000 ‘On November 5, 2021, a Dunn Company truck was in an accident with an auto driven by Bell. Dunn received notice on January 15, 2022 of a lawsuit for P700,000 damages for personal injuries suffered by Bell. ‘The entity's counsel believed itis probable that Bell wll be awarded an estimated amount in the range between P200,000 and P450,000, and no amount is a better estimate of potential liability than any other amount because each point in the range is as likely as any other. ‘The 2021 financial statements were issued on March 1, 2022 hitpsildocs. google. comformsael FAlpOLSfE=n71S i080H2BUKtDSy0-0X6BEIHZIH6QU.JZAMW.OWaviewscore?ver0&omO8W=18"K=08vl,. 18/19‘01422, 10:09 AM ‘ACC309_Quiz 01 Intangible Assets and Current Liabilties What amount of loss should be accrued on December 31, 2021? wy © 200,000 Oo © 450,000 © 325,000 v Submission 0 of 0 points Please make sure that your answers are final before you click submit. This form was created inside of Batangas State University. Google Forms hitpsildocs. google. comformsalel FAlpOLSfE=n71S i080H2BUktDSy0-0X6SEIHZIH6QU.JZOMW.OWaviewscore?ver0&omO8W=18MK=08vi,. 19/19