An "indefinite life" for an intangible asset means that
A) the asset will last forever.
B) unlimited amortization may be recorded for the asset.
C) amortization is only recorded if future economic benefits can be determined.
D) there appears to be no foreseeable limit to how long the asset will generate positive future cash flows.

Question

Quizplus · Accepted Answer

An indefinite life for an intangible asset means that there is no foreseeable limit to how long the asset will generate positive future cash flows. This means that amortization cannot be recorded unless there is an impairment in the asset's value, and the asset will not be amortized over a specific period of time.

An "Indefinite Life" for an Intangible Asset Means That