11) Intangible assets are ________.
A) assets with a physical presence
B) assets that can be seen and touched
C) rights to expected future benefits
D) assets with definite lives only
12) In accounting terms, what is goodwill?
A) the actions a company takes to foster the development of social responsibility
B) the charitable contributions made by a company
C) the excess of the cost of an acquired company over the sum of the fair market values of its identifiable assets less its liabilities
D) the excess of the cost of an acquired company over the sum of the fair market value of its identifiable assets
13) The amortization of intangible assets applies to ________.
A) Research and Development Costs
C) intangible assets with definite lives
D) intangible assets with indefinite lives
14) Goodwill remains on a company's books until ________.
A) accountants amortize it
B) accountants depreciate it
C) management sells it
D) management determines its value is impaired
15) Accounts receivable is a current asset.
16) Inventory is considered to be a cash equivalent.
17) A company's operating cycle can be longer than one year.
18) The balance sheet usually shows cash equivalents at cost or market price, whichever is higher.
19) The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.
20) Land is not depreciated.