Chapter VII: Intangible Assets Valuation

Intangible assets include:

• Machinery

• Patents and trademarks

• Office buildings

• Inventory

The value of goodwill in a company is determined by:

• The market price of the company's stock

• The excess amount paid over the fair value of identifiable assets

• The company's brand recognition

• The value of its tangible assets

What is a common method for valuing intangible assets?

• Cost approach

• Income approach

• Market approach

• Depreciation method

Brand recognition is an example of:

• A tangible asset

• A current liability

• An intangible asset

• A financial asset

Intangible assets are generally difficult to value because:

• They are easily sold on the market

• They have no intrinsic value

• They are not easily converted into cash

• Their value changes daily

Which of the following is NOT an intangible asset?

• A trademark

• A patent

• A manufacturing plant

• Goodwill

Which valuation method uses expected future benefits to estimate the value of intangible assets?

• Market method

• Cost method

• Income method

• Liquidation method

Intangible assets are usually amortized over:

• Their market value

• A fixed number of years

• The company's fiscal year

• Their useful life

Valuation of intangible assets is critical in:

• Tax planning

• Budgeting

• Mergers and acquisitions

• Product development

The fair value of intangible assets is most relevant for:

• Inventory management

• Financial reporting

• Marketing campaigns

• Payroll analysis