MUHASEBE II - Deneme Sınavı - 9

Intangible assets are a unique kind of non-current assets that provide certain legal rights, privileges, and competitive advantages to the business1. Intangible assets don’t have a physical substance or form unlike property, plant and equipment assets. Instead, intangible assets convey special rights from patents, copyrights, licenses, trademarks, etc. and other inventive works. Besides these, intangible assets also include pre-operating costs, research and development costs and leasehold improvements. Intangible assets have distinctive qualifications from other assets that require them to be recorded as intangible asset. These are;

• They have a value for a specific company

• Some of them have unlimited life

• Their values fluctuate highly because their benefits are based on competition.

The correct answer is D.

Intangible assets are a unique kind of non-current assets that provide certain legal rights, privileges, and competitive advantages to the business1. Intangible assets don’t have a physical substance or form unlike property, plant and equipment assets. Instead, intangible assets convey special rights from patents, copyrights, licenses, trademarks, etc. and other inventive works. Besides these, intangible assets also include pre-operating costs, research and development costs and leasehold improvements. The correct answer is A.

Unlike patents and copyrights, goodwill is not amortized because it is considered to have an indefinite life. Instead, the acquiring company measures the fair value of its acquired goodwill each year. If the goodwill has increased in fair value, there is nothing to record such as a gain on goodwill. However, if goodwill’s fair value has decreased, then the company records an impairment loss and goodwill must be written down. The correct answer is C.

When a company develops its own intangible assets, it should record those types of costs as period expenses. The correct answer is C.

The cost of the purchased patent is capitalized in Patents account as an intangible asset. This cost is amortized over the years of the patent’s expected useful life. Intangible assets are generally amortized by straight-line method. The cost of the intangible asset is distributed to its useful life equally. In the first example, the useful life of the patent is 10 years.

So the amortization rate will be;  Amortization Rate=1/ Patent’ s Useful Life= 1/ 5

Amortization Expense = Capitalized Cost x Amortization Rate 

The correct answer is A.

Depletion per Unit=  Cost-Residual Value / Total Estimated Units Available

Depletion Expense=Depletion per Unit x Yearly Extracted Quantity

Depletion per Unit : 40000-0 / 80000 : 0,5

Depletion Expense: 0,5 x 20000 : 10000 The correct answer is C.

Depletion per Unit= Cost- Residual Value / Total Estimated Units Available

Depletion per Unit= 6000000 - 0 /30000000 = 0,2

Goodwill means different things to different people. Generally, it refers to a company’s good reputation and intangible assets of a business that is created from favorable attributes that relate to a company and are not attributable to any other specific asset. These include managerial skills, desirable location, good customer relations, skilled employees, high-quality products, and good relations with labor unions. A good reputation may create goodwill, but that company cannot record goodwill for its own business. The correct answer is E.

Licenses are privileges granted by a government to use public property in performing services. A license granted by a governmental body permits a company to use public property in performing its services. The correct answer is E.

A copyright is an exclusive right granted by the government to publish, reproduce and sell a book, musical composition, film, other art works, computer programs, or intellectual property. Government grants copyrights to authors, composers, sculptors and other artists for their creations and works. Copyright belongs to the person who creates it. The correct answer is A.

Amortization Rate= 1/Patent’ s Useful Life = 1/5

Amortization Expense = 300,000 x 1/5 = 60,000 TL

The correct answer is B.

It is an example of the internally developed patent. It is recorded as the patent development cost. The correct answer is A.

The leasehold improvements account is capitalized because the expenditure made is for the rented estate to bring it to its intended use and also it increases the value of the estate. Leasehold Improvements account is only used for rented assets. The correct answer is D.

Depletion is to natural resources as depreciation is to plant assets and amortization to intangible assets. The correct answer is E.

Regular repair and maintenance expenditures will not be capitalized. They are recorded as term expenses. The correct answer is B.

Goodwill is the value paid above the net worth of the company’s assets and liabilities. The correct answer is C.

License is privilege granted by a government to use public property in performing services. A license granted by a governmental body permits a company to use public property in performing its services. The correct answer is E.

Jan. 1, 2019

Dec. 31, 2019

The correct answer is A.

All intangible assets are subject to an annual impairment test to determine if the assets
justify their value on the balance sheet. The correct answer is C.

The process of allocating the cost of an intangible asset to expense over its useful life is referred to amortization. The correct answer is E.