Which of the following statements is true?
A) Long-lived tangible assets will not be used up within one year of the purchase date, but there is no minimum useful life for long-lived intangible assets.
B) Items in a company's inventory that are not expected to be sold in the next year are considered long-lived assets.
C) All long-lived intangible assets must be amortized over a period of 40 years or less.
D) Intangible assets with unlimited or indefinite lives are not amortized.

Question

Quizplus · Accepted Answer

Intangible assets with unlimited or indefinite lives are not amortized, as there is no definite end to their useful life. However, all other long-lived tangible and intangible assets must be amortized over their useful lives. Option A is incorrect because there are minimum useful lives for long-lived intangible assets. Option B is incorrect because inventory is not considered a long-lived asset. Option C is incorrect because there is no fixed period for the amortization of long-lived intangible assets - the period is determined by their estimated useful life.

Which of the Following Statements Is True