Instructions
Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
Q1. What are the items considered in Capitalization of interests? Describe each item
Answer Q1.
Qualifying assets:
Capitalization period:
Amount to capitalize:
Q2. Intangible assets have three main characteristics: (1) they are identifiable, (2) they lack physical existence, and (3) they are not monetary assets.
Instructions
(a) Explain why intangibles are classified as assets if they have no physical existence.
(b) Explain why intangibles are not considered monetary assets.
(c) And, why does the accounting profession make a distinction between internally created intangible assets and purchased intangible assets?
Answer Q2.
1