Question 1

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:

	A. Attorney fees
	B. Consulting fees
	C. Research and development fees
	D. Design costs

Question 2

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

Question 2 options:

A.	Designing
B.	Coding
C.	Testing
D.	None of the above

Question 3

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

Question 3 options:

A.	Neither costs of goodwill from a business combination nor costs of developing goodwill internally
B.	Not costs of goodwill from a business combination but costs of developing goodwill internally
C.	Both costs of goodwill from a business combination and costs of developing goodwill internally
D.	Costs of goodwill from a business combination but costs of developing goodwill internally

Question 4

Purchased goodwill should ________.

Question 4 options:

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

Question 5

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

Question 5 options:

A.	Associating cause and effect
B.	Systematic and rational allocation
C.	Income tax minimization
D.	Immediate recognition as an expense