DeVry ACCT 212 Week 2 QUIZ

 Student Answer:[removed] Patent

[removed] Copyright   [removed] Trademark   [removed] Franchise   

 

1.Question :(TCO 2) An exclusive 20-year right to manufacture a product or use a process is a:

 

   

2.Question :(TCO 2) Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were: The journal entry to record this acquisition would include a:

Student Answer: [removed] Debit to Cash in the amount of $875,000  [removed] Credit to Cash in the amount of $950,000   [removed] Debit to Goodwill in the amount of $350,000   [removed] Debit to liabilities in the amount of $175,000 Instructor Explanation:Incorporated paid $950,000 in cash for the acquisition of Huron. Therefore the journal entry will include a credit to cash in the amount of $950,000.

 

   

3.Question :(TCO 2) Software development costs are capitalized if they are incurred:

Student Answer: [removed] Prior to the point at which technological feasibility has been established.   [removed] After commercial production has begun.  [removed] After technological feasibility has been established but prior to the product availability date.   [removed] None of the above is correct.

 

   

4.Question :(TCO 2) Under U.S. GAAP, research expenditures are:

Student Answer:[removed] Expensed in the period incurred.   [removed] Expensed in the period they are determined to be unsuccessful.   [removed] Capitalized if certain criteria are met.   [removed] Expensed if unsuccessful, capitalized if successful.

  

5.Question :(TCO 2) Goodwill has:

Student Answer: [removed] A life of seventy years.  [removed] An indefinite life.   [removed] A life of twenty years.   [removed] A life of forty years.