Acct 551 Midterm

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1. (TCO C) The cost of an intangible asset includes all of the following except (Points : 5) |

       purchase price.

       legal fees.

       other incidental expenses.

       All of these are included. 

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2. (TCO C) Which of the following is not an intangible asset? (Points : 5) |

       Trade name

       Research and development costs

       Franchise

       Copyrights 

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3. (TCO C) Purchased goodwill should (Points : 5) |

       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. 

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4. (TCO D) An employee's net (or take-home) pay is determined by gross earnings minus amounts for income tax withholdings and the employee's (Points : 5) |

       portion of FICA taxes and unemployment taxes.

       portion of FIT, SIT, and Medicare deductions.

       portion of FICA taxes, unemployment taxes, and any voluntary deductions.

       portion of FICA taxes and any voluntary deductions. 

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5. (TCO D) Which of the following taxes does not represent a payroll deduction a company may incur? (Points : 5) |

       Federal income taxes

       FICA taxes

       State unemployment taxes

       State income taxes

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6. (TCO D) Information available prior to the issuance of the financial statements indicates that it is probable that, at the date of the financial statements, a liability has been incurred for obligations related to product warranties. The amount of the loss involved can be reasonably estimated. Based on the above facts, an estimated loss contingency should be (Points : 5) |

       accrued.

       disclosed but not accrued.

       neither accrued nor disclosed.

       classified as an appropriation of retained earnings. 

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7. (TCO D) If bonds are initially sold at a discount and the straight-line...