Question 1

Match the intangible assets described with their proper classification (a-d).​
-Rights to sell a book and make a profit
A)Patent
B)Copyright
C)Trademark
D)Goodwill

Accepted Answer

The rights to sell a book and make a profit is a type of copyright, which is the legal protection granted to creators of original works, such as books, music, and movies. Patents are granted for inventions and new processes, trademarks are granted for logos and brand names, and goodwill refers to the reputation and relationships a company has built with its customers.

Question 2

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of grading and leveling land to be used for a new business site
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The cost of grading and leveling land to be used for a new business site is classified as a cost of the land itself because it is necessary to prepare the land for its intended use, and it does not have a limited useful life.

Question 3

Match the intangible assets described with their proper classification (a-d).​
-McDonald's Golden Arches
A)Patent
B)Copyright
C)Trademark
D)Goodwill

Accepted Answer

McDonald's Golden Arches are a trademark, which is a type of intangible asset used to identify and distinguish a company's products or services from those of others.

Question 4

Match the intangible assets described with their proper classification (a-d).​
-Location of a company
A)Patent
B)Copyright
C)Trademark
D)Goodwill

Accepted Answer

Goodwill is the appropriate classification for the location of a company, as it represents the value of a business' reputation, customer base, and other intangible factors that contribute to its success in a specific location. Patents, copyrights, and trademarks are all forms of intellectual property, but they do not relate to the physical location of a company.

Question 5

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of installing new equipment
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The cost of installing new equipment is directly associated with the category of Machinery and Equipment, as these costs are necessary to prepare the equipment for its intended use.

Question 6

Classify each of the following costs associated with long-lived assets as one of the following:
-Fences around land at new business location
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

Fences around land are considered a land improvement, which is a cost associated with long-lived assets.

Question 7

Classify each of the following costs associated with long-lived assets as one of the following:
-Supplies (materials) used to test new equipment
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The supplies (materials) used to test new equipment are directly associated with the equipment itself, thus they are classified under machinery and equipment costs. These costs are necessary for making the equipment ready for its intended use.

Question 8

Classify each of the following costs associated with long-lived assets as one of the following:
-Freight costs paid on purchase of new equipment
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

Freight costs paid on the purchase of new equipment are associated with machinery and equipment.

Question 9

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost assessed by city for paving a public street that borders land on which a new business location will be constructed
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The cost assessed by the city for paving a public street is related to the land on which the new business location will be constructed. Therefore, it is classified as a land cost. It is not related to any improvement or machinery that will be used in the construction of the building.

Question 10

Classify each of the following costs associated with long-lived assets as one of the following:
-Walkways to surround new business location
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

Walkways are improvements made to the land and are therefore considered as land improvements.

Question 11

Classify each of the following costs associated with long-lived assets as one of the following:
-Modifying a building purchased for new business location
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The cost of modifying a building purchased for a new business location would be classified as a Building, as it refers to the cost of improving or altering an existing building.

Question 12

Classify each of the following costs associated with long-lived assets as one of the following:
-Repairs made to used office equipment
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

Repairs made to used office equipment are associated with machinery and equipment, which are long-lived assets used in the production of goods and services.

Question 13

Classify each of the following costs associated with long-lived assets as one of the following:
-Purchase price of land purchased for new business site
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

The cost associated with the purchase price of land should be classified under category C, which is "Land."

Question 14

Match the intangible assets described with their proper classification (a-d).​
-A new kitchen gadget that can be produced by only one company
A)Patent
B)Copyright
C)Trademark
D)Goodwill

Accepted Answer

The new kitchen gadget that can be produced by only one company is an example of a patent, as it is a unique invention that can be protected by legal rights.

Question 15

Classify each of the following costs associated with long-lived assets as one of the following:
-Costs to survey a new piece of land for a new business location
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

The cost to survey a new piece of land for a new business location is considered a cost associated with the purchase of land.

Question 16

Classify each of the following costs associated with long-lived assets as one of the following:
-Costs of government permits required to develop land for a new business location
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

Costs of government permits required to develop land for a new business location are directly associated with the preparation or development of the land itself, thus classified under Land costs. These costs are necessary to prepare the land for its intended use and are capitalized as part of the land's cost.

Question 17

Classify each of the following costs associated with long-lived assets as one of the following:
-Paved parking areas at new business location
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

Paved parking areas are considered as land improvements, which are improvements made to land to increase its utility or enhance its value, such as adding sidewalks, parking areas, landscaping, etc.

Question 18

Classify each of the following costs associated with long-lived assets as one of the following:
-Landscaping at new business location
A)Buildings
B)Machinery and equipment
C)Land
D)Land improvements

Accepted Answer

Land improvements refer to enhancements made to land (excluding buildings) that increase its value, such as landscaping. Therefore, the cost associated with landscaping at a new business location would fall under land improvements.

Question 19

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of removing an existing building to ready land for use as a new business site
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

The cost of removing an existing building to ready land for use as a new business site is considered part of the land cost. This is because such costs are necessary to prepare the land for its intended use, and they are capitalized as part of the land's cost rather than being expensed.

Question 20

Classify each of the following costs associated with long-lived assets as one of the following:
-Outdoor lighting at new business location
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Accepted Answer

Outdoor lighting is typically classified as a land improvement, which is a long-lived asset specifically related to the land on which a business operates.

Quiz 9: Long-Term Assets: Fixed and Intangible

Match the intangible assets described with their proper classification (a-d). -Rights to sell a book and make a profit A)Patent B)Copyright C)Trademark D)Goodwill

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of grading and leveling land to be used for a new business site A)Land improvements B)Buildings C)Land D)Machinery and equipment

Match the intangible assets described with their proper classification (a-d). -McDonald's Golden Arches A)Patent B)Copyright C)Trademark D)Goodwill

Match the intangible assets described with their proper classification (a-d). -Location of a company A)Patent B)Copyright C)Trademark D)Goodwill

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of installing new equipment A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Fences around land at new business location A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Supplies (materials) used to test new equipment A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Freight costs paid on purchase of new equipment A)Buildings B)Machinery and equipment C)Land D)Land improvements

Classify each of the following costs associated with long-lived assets as one of the following: -Cost assessed by city for paving a public street that borders land on which a new business location will be constructed A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Walkways to surround new business location A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Modifying a building purchased for new business location A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Repairs made to used office equipment A)Buildings B)Machinery and equipment C)Land D)Land improvements

Classify each of the following costs associated with long-lived assets as one of the following: -Purchase price of land purchased for new business site A)Buildings B)Machinery and equipment C)Land D)Land improvements

Match the intangible assets described with their proper classification (a-d). -A new kitchen gadget that can be produced by only one company A)Patent B)Copyright C)Trademark D)Goodwill

Classify each of the following costs associated with long-lived assets as one of the following: -Costs to survey a new piece of land for a new business location A)Buildings B)Machinery and equipment C)Land D)Land improvements

Classify each of the following costs associated with long-lived assets as one of the following: -Costs of government permits required to develop land for a new business location A)Buildings B)Machinery and equipment C)Land D)Land improvements

Classify each of the following costs associated with long-lived assets as one of the following: -Paved parking areas at new business location A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Landscaping at new business location A)Buildings B)Machinery and equipment C)Land D)Land improvements

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of removing an existing building to ready land for use as a new business site A)Land improvements B)Buildings C)Land D)Machinery and equipment

Classify each of the following costs associated with long-lived assets as one of the following: -Outdoor lighting at new business location A)Land improvements B)Buildings C)Land D)Machinery and equipment