Question 1 (2 points)

When a company develops a trademark the costs directly related to securing, it should generally be capitalized. Which of the following costs associated with a trademark would not be allowed to be capitalized?

Question 1 options:

	Attorney fees
	Consulting fees
	Research and development fees
	Design costs

Question 2 (2 points)

When developing computer software to be sold, which of the following costs should be capitalized?

Question 2 options:

	Designing
	Coding
	Testing
	None of the above

Question 3 (2 points)

Which of the following costs of goodwill should be amortized over their estimated useful lives?

Question 3 options:

	Neither costs of goodwill from a business combination nor costs of developing goodwill internally
	Not costs of goodwill from a business combination but costs of developing goodwill internally
	Both costs of goodwill from a business combination and costs of developing goodwill internally
	Costs of goodwill from a business combination but costs of developing goodwill internally

Question 4 (2 points)

Purchased goodwill should ________.

Question 4 options:

	be written off as soon as possible against retained earnings
	be written off as soon as possible as an extraordinary item
	be written off by systematic charges as a regular operating expense over the period benefited
	not be amortized

Question 5 (2 points)

Which of the following principles best describes the current method of accounting for research and development costs?

Question 5 options:

	Associating cause and effect
	Systematic and rational allocation
	Income tax minimization
	Immediate recognition as an expense