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 typically amortized over their useful life?

Trademarks with indefinite lives

Patents

Goodwill

Land

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Verified step by step guidance

Understand the concept of amortization: Amortization is the systematic allocation of the cost of an intangible asset over its useful life. It applies to intangible assets with finite useful lives, not indefinite ones.

Review the characteristics of each intangible asset mentioned: Trademarks with indefinite lives are not amortized because they do not have a finite useful life. Goodwill is also not amortized but tested for impairment annually. Land is a tangible asset and is not subject to amortization.

Focus on patents: Patents are intangible assets with a finite useful life, typically determined by their legal protection period (e.g., 20 years). Therefore, patents are amortized over their useful life.

Determine the correct answer: Based on the explanation above, patents are the intangible assets that are typically amortized over their useful life.

Conclude the reasoning: The correct answer is patents because they meet the criteria for amortization, unlike trademarks with indefinite lives, goodwill, or land.