Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

8. Long Lived Assets

Intangible Assets and Amortization

Financial Accounting

8. Long Lived Assets

Intangible Assets and Amortization

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Multiple Choice

Which of the following intangible assets are usually considered to have indefinite lives?

Goodwill

Copyrights

Patents

Franchise agreements with limited terms

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Verified step by step guidance

Step 1: Understand the concept of intangible assets. Intangible assets are non-physical assets that provide value to a business, such as intellectual property, brand recognition, or goodwill.

Step 2: Learn the distinction between indefinite and finite lives. Intangible assets with indefinite lives are those that are not expected to expire or diminish in value over time, whereas finite-lived intangible assets have a defined useful life and are amortized over that period.

Step 3: Analyze each option provided in the problem: Goodwill, Copyrights, Patents, and Franchise agreements with limited terms. Determine whether each asset has an indefinite or finite life based on its characteristics.

Step 4: Goodwill is typically considered to have an indefinite life because it represents the value of a business's reputation and customer relationships, which do not have a defined expiration date.

Step 5: Copyrights, Patents, and Franchise agreements with limited terms are considered finite-lived intangible assets because they have specific legal durations or contractual terms that define their useful life.