DeVry ACCT 212 Week 2 QUIZ

 1.

Question :

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

Student Answer:

[removed] Patent

[removed] Copyright

[removed] Trademark

[removed] Franchise

 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.