Week 2: Intangible Assets We introduced intangible assets last week, and this week, we will study them in more detail. Please define and describe the term intangible asset. What major characteristics differentiate intangible assets from other assets? How is the useful life determined for intangibles?
1. Assume the following sales data for a company: 2022 $1000000 2021 $822250 2020$ 650000 If 2020 is the base year, what is the percentage increase in sales from 2020 to 2021? A. 154% B. 127% C. 549% D. 27% 2. Assume the following sales data for a company: 2022$980000 2021 $806400 2020 $ 640000 … Read more
1. Liabilities are classified on the balance sheet as current or A. long-term. B. accrued. C. deferred. D. unearned. 2. A current liability is a debt that can reasonably be expected to be paid A. out of cash currently on hand. B. between 6 months and 18 months. C. out of currently recognized revenues. D. … Read more
1. Which of the following is not properly classified as property, plant, and equipment? A. A truck held for resale by an automobile dealership. B. Land improvement, such as parking lots and fences. C. Building used as a factory. D. Land used in ordinary business operations. 2. A characteristic of a plant asset is that … Read more
1. Gross profit equals the difference between A. sales revenue and cost of goods sold. B. sales revenue and operating expenses. C. sales revenue and cost of goods sold plus operating expenses. D. net income and operating expenses. 2. Two categories of expenses in merchandising companies are A. other expenses and cost of goods sold. … Read more
1. All of the following are examples of internal control procedures except A. customer satisfaction surveys. B. reconciling the bank statement. C. using prenumbered documents. D. insistence that employees take vacations. 2. Each of the following is a feature of internal control except A. bonding of employees. B. recording of all transactions. C. separation of … Read more
1. An accounting time period that is one year in length is called: A. a fiscal year. B. an interim period. C. the time period assumption. D. a reporting period. 2. In a service-type business, revenue is recognized: A. when cash is received. B. at the end of the month. C. when the service is … Read more
1.Collection of a $740 Accounts Receivable A. decreases a liability $740; increases stockholders’ equity $740. B. increases an asset $740; decreases an asset $7.40. C. increases an asset $740; decreases a liability $740. D. decreases an asset $740; decreases a liability $740. 2. If expenses are paid in cash, then A. assets will increase B. … Read more
Which of the following is the most appropriate and modern definition of accounting? The interconnected network of subsystems necessary to operate a business. The information system that identifies, records, and communicates the economic events of an organization to interested users. A means of collecting information. Electronic collection, organization, and communication of vast amounts of … Read more
Q1 Here is financial information for Sage Hill Inc. December 31, 2022 December 31, 2021 Current assets $109,277 $93,800 Plant assets (net) 403,396 353,300 Current liabilities 102,450 68,300 Long-term liabilities 125,223 93,800 Common stock, $1 par 132,669 118,300 … Read more