6. An intangible asset should:

A. be expensed immediately if it has a finite life.

B. not be amortized if it has an indefinite life.

C. be grouped together with property plant, and equipment for reporting purposes.

D. be amortized over its useful life or legal life, whichever is longer.

7. Barker Company has a December 31 year end. The company received its property tax bill for

2020 on March 1, 2020. According to the bill, taxes of $ 24,000 for the year ended December 31,

2020 are due for payment on April 30, 2020. On April 30, 2020, Barker will record entries in

which of the following accounts?

A. Dr. Property Tax Payable; Cr. Cash

B. Dr. Property Tax Payable; Dr. Prepaid Property Tax; Dr. Property Tax Expense; Cr. Cash

C. Dr. Property Tax Expense; Dr. Prepaid Property Tax; Cr. Cash

D. Dr. Property Tax Expense; Cr. Cash

8. Fees accepted in advance from a client:

A. are considered earned revenues.

B. increase income.

C. are recorded as liabilities.

D. have no impact on assets.

9. Under ASPE, a contingency that is not likely to occur:

A. should always be disclosed in the financial statements.

B. must be accrued as a loss.

C. does not need to be disclosed unless the loss would result in a substantial negative effect on

the company's financial position.

D. never needs to be recorded or disclosed in the financial statements.

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10. HST (harmonized sales tax) collected by a retailer is recorded by:

A. crediting HST Recoverable.

B. debiting HST Expense.

C. crediting HST Payable.

D. debiting HST Payable.