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

If an intangible asset has an indefinite useful life, it is not amortized. Which of the following best completes the sentence?

indefinite useful life

physical substance

finite useful life

residual value

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Verified step by step guidance

Understand the concept of intangible assets: Intangible assets are non-physical assets that provide value to a company, such as patents, trademarks, or goodwill.

Learn the difference between finite and indefinite useful life: An intangible asset with a finite useful life is amortized over its useful life, while an intangible asset with an indefinite useful life is not amortized but is tested for impairment annually.

Recognize the term 'indefinite useful life': This refers to an asset that does not have a foreseeable limit to the period during which it is expected to generate economic benefits for the company.

Evaluate the options provided: The correct completion of the sentence should align with the concept that intangible assets with an indefinite useful life are not amortized.

Select the correct answer: Based on the explanation, the term 'indefinite useful life' best completes the sentence, as it directly relates to the non-amortization of such assets.