Which of the following statements is correct?
A)Amortization of intangible assets is always recorded in a contra asset account.
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

Long-lived assets are assets that are acquired for use in the business and are not intended for resale.Amortization is usually credited directly to the intangible asset account-no contra account is used.There is no requirement that all long-lived intangible assets be amortized over a period of 40 years or less.Intangible assets with unlimited lives (trademarks and goodwill)are not amortized.

Which of the Following Statements Is Correct