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9 Cards in this Set
- Front
- Back
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The patent will be capitalized over the greater or the lessor of legal or economic life?
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Lessor of the two
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Under GAAP, contracted out third party , reproduction prototypes and model costs, and costs for searching new products or new process alternatives are reported as R&D expense. TRUE OR FALSE?
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TRUE
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should costs incurred for maintaining or developing goodwill be capitalized?
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No. Goodwill only capitalized when brought on from a purchase of another entity.
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What is the definition of R&D?
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includes cost incurred prior to technological feasibility for developed software that is to be sold, leased or marketed. Research is defined as discovery of new knowledge to develop a new product or service.
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Under patents, what is capitalized and what is expensed under GAAP?
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Legal and other costs associated with registering a patent are capitalized. R&D are expensed
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When there is an unlimited right of return, what are the conditions needed to record a sale.
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1. The sale price is substantially fixed
2. the buyer assumes all risk of loss 3. the buyer has paid some form of consideration 4. amount of returns can be reasonable estimated. |
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are costs incurred after the development stage expensed or capitalized for software internal use?
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Costs incurred after development stage are capitalized and costs incurred during the development stage are expensed.
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are training and maintenance on development of internal software capitalized or expensed?
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Expensed
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US GAAP requires Goodwill be tested for impairment at what level? Acquistion? Reporting? Business as a whole?
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Reporting
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