Which statement is correct about indefinite lived intangible assets?
A)This is an infinite lived asset.
B)The asset is expected to continue providing economic benefits for the foreseeable future.
C)Management does not know how long the asset is expected to provide economic benefits.
D)The asset has fixed and determinable cash flows.

Question

Quizplus · Accepted Answer

Indefinite lived intangible assets are assets that are not expected to have a limited useful life and are expected to provide economic benefits for the foreseeable future. Therefore, statement B is the correct choice. Statement A is incorrect as "infinite lived" is not a term used to describe these assets. Statement C is incorrect as management must have a reasonable estimate of the useful life of an indefinite lived intangible asset. Statement D is incorrect as the cash flows associated with these assets are not fixed and determinable.

Which Statement Is Correct About Indefinite Lived Intangible Assets