If the asset has a finite useful life,the company must include in their financial statement disclosures the useful life or the amortization rates used.

Question

Quizplus · Accepted Answer

This statement is true as per the accounting standards, if an asset has a finite useful life, the company must disclose the useful life or the amortization rates used in their financial statement disclosures. This helps investors and analysts to understand the depreciation or amortization expense and evaluate the company's future cash flows.

If the Asset Has a Finite Useful Life,the Company Must