Reference no: EM132765933

Problem 1: Which of the following statements is true about research and development?

a) Development involves application of research findings

b) Expenditure during the research phase cannot be capitalized as an intangible asset

c) Expenditure during the development phase may sometimes be capitalized as an intangible asset

d) All of these statements are true.

Problem 2: Which of the following statements is true in relation to intangible assets?

a) Intangible assets cannot be treated as having an indefinite useful life.

b) Intangible assets with a finite useful life are tested annually for impairment.

c) Intangible assets acquired in a business combination are recognized only when they have already been recognized by the acquiree.

d) Intangible assets acquired in a business combination are recognized separately from goodwill.