Reference no: EM132785514

Problem 1: Amortization of an intangible asset with a finite useful life shall commence when

A. The costs can be identified with reasonable certainty

B. It is first recognized as an asset

C. It is available for use

D. It is probable that it will generate future economic benefits

Problem 2: Which of the following items should not be amortized over the periods of estimated benefits?

A. Franchise right.

B. Goodwill arising from the purchase of an existing business.

C. Computer software.

D. Patent right purchased from an investor.

Problem 3: An intangible asset is (choose the incorrect one)

A. An identifiable nonmonetary asset without physical substance

B. Held for use in the production or supply of goods or services, for rental to others, or administrative purposes

C. A resource controlled by an entity as a result of past event

D. A resource from which future economic benefits are expected to flow to the entity