fin 461 exam 4 walker Questions with complete solution
2025/2026
1. assets that are expected to provide economic benefits tangible
assets
over a future period of time, typically greater than
one year
2. assets lacking physical substance such as patents and intangible
assets
trademarks
3. assets that may be tangible, intangible, or long-lived financial assets
financial assets such as investments in equity
or debt securities
4. you usually capitalize expenditures if the benefit will last over
a year or it will extend
the useful life
5. you usually expense expenditures if the benefit will last
less than a year
6. accounting goodwill= purchase price - fair
value of identifiable
assets and liabilities
7. financial statement effects of expensing 1. lowers retained earn-
ings on balance sheet
2. lowers net
income on income
statement
3. logged as an
operat- ing activity on
stmt of cash flows
8. financial statement effects of capitalizing 1. increases assets on bal-
ance sheet
1/
40
, 2. depreciation
expense on balance
sheet
2/
40
, fin 461 exam 4 walker
Study online at https://quizlet.com/_cg4vb7
3. logged as
investing ac- tivity on
stmt of cash flows
9. is the cost model allowed by GAAP or IFRS? both
10. is the re-valuation model allowed by GAAP or IFRS? IFRS
11. unanticipated decline in value unimpariment
12. is asset value write down allowed by GAAP or IFRS? both
13. is asset value write up permitted by GAAP or IFRS? IFRS
14. Which costs incurred with the purchase of C. Training required to
property and equipment are expensed? use the property and
A. Delivery charges equip- ment
B. Installation and Testing
C. Training required to use the property and
equip- ment
15. when constructing an asset for sale, directly
capitalized as part of in-
related borrowing costs are most likely
ventory
16. intangible assets with finite useful lives mostly
differ from intangible assets with infinite amortization
useful lives with respect to accounting
treatment of:
17. costs incurred for intangible assets are internally developed
generally ex- pensed when they are
18. under us gaap, when assets are acquired in a business assets that are
neither tan-
combination, goodwill most likely arises gible nor identifiable in-
from tangible assets
3/
40
, 4/
40
2025/2026
1. assets that are expected to provide economic benefits tangible
assets
over a future period of time, typically greater than
one year
2. assets lacking physical substance such as patents and intangible
assets
trademarks
3. assets that may be tangible, intangible, or long-lived financial assets
financial assets such as investments in equity
or debt securities
4. you usually capitalize expenditures if the benefit will last over
a year or it will extend
the useful life
5. you usually expense expenditures if the benefit will last
less than a year
6. accounting goodwill= purchase price - fair
value of identifiable
assets and liabilities
7. financial statement effects of expensing 1. lowers retained earn-
ings on balance sheet
2. lowers net
income on income
statement
3. logged as an
operat- ing activity on
stmt of cash flows
8. financial statement effects of capitalizing 1. increases assets on bal-
ance sheet
1/
40
, 2. depreciation
expense on balance
sheet
2/
40
, fin 461 exam 4 walker
Study online at https://quizlet.com/_cg4vb7
3. logged as
investing ac- tivity on
stmt of cash flows
9. is the cost model allowed by GAAP or IFRS? both
10. is the re-valuation model allowed by GAAP or IFRS? IFRS
11. unanticipated decline in value unimpariment
12. is asset value write down allowed by GAAP or IFRS? both
13. is asset value write up permitted by GAAP or IFRS? IFRS
14. Which costs incurred with the purchase of C. Training required to
property and equipment are expensed? use the property and
A. Delivery charges equip- ment
B. Installation and Testing
C. Training required to use the property and
equip- ment
15. when constructing an asset for sale, directly
capitalized as part of in-
related borrowing costs are most likely
ventory
16. intangible assets with finite useful lives mostly
differ from intangible assets with infinite amortization
useful lives with respect to accounting
treatment of:
17. costs incurred for intangible assets are internally developed
generally ex- pensed when they are
18. under us gaap, when assets are acquired in a business assets that are
neither tan-
combination, goodwill most likely arises gible nor identifiable in-
from tangible assets
3/
40
, 4/
40
