ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 201

TRUE-FALSE—Conceptual
1. Intangible assets derive their value from the right (claim) to
receive cash in the future.
2.

Internally created intangibles are recorded at cost.

3. Internally generated intangible assets are initially recorded at
fair value.

4. Amortization of limited-life intangible assets should not be
impacted by expected residual values.
5.
year.

Some intangible assets are not required to be amortized every

6. Limited-life intangibles are amortized by systematic charges
to expense over their useful life.
7. The cost of acquiring a customer list from another company is
recorded as an intangible asset.
8. The cost of purchased patents should be amortized over the
remaining legal life of the patent.
9. If a new patent is acquired through modification of an existing
patent, the remaining book value of the original patent may be
amortized over the life of the new patent.
10. In a business combination, a company assigns the cost, where
possible, to the identifiable tangible and intangible assets, with the
remainder recorded as goodwill.
11. Internally generated goodwill should not be capitalized in the
accounts.