Under current accounting practice, intangible assets are classified as
A) amortizable or unamortizable.
B) limited-life or indefinite-life.
C) specifically identifiable or goodwill-type.
D) legally restricted or goodwill-type.

Question

Quizplus · Accepted Answer

Intangible assets are generally categorized as either limited-life or indefinite-life assets. Limited-life intangible assets have an identifiable useful life and are subject to amortization, while indefinite-life intangible assets have an unclear or infinite useful life and are not amortized but are tested for impairment annually. The other options, such as specifically identifiable or goodwill-type, are subcategories within the broader classification of limited-life and indefinite-life intangible assets. Legally restricted is another subcategory, but not a commonly used one for classifying intangible assets.

Under Current Accounting Practice, Intangible Assets Are Classified as