1. Define “intangible asset.”
2. Give three examples of intangible assets.
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3. At what value are intangible assets typically reported?
4. How does an intangible asset differ from property and equipment?
5. What is amortization?
6. How does a company typically determine the useful life of an intangible?
7. Under what circumstances could the cost to defend an intangible asset in court be capitalized to the asset account?
8. Why are intangibles, like trademarks, not recorded at their market value, which can greatly exceed historical cost?
9. What are the two reasons intangible assets are reported at more than historical cost plus filing and legal costs?
10. When should a parent (acquiring) company record the intangibles of a subsidiary on its balance sheet?
11. What is “goodwill”?
12. Is goodwill amortized like other intangibles?
13. What should companies do with goodwill each reporting period?
14. Payments made over an extended period of time should be divided into what two items?
15. What is present value?
16. What is an annuity?