Which of the following statements is correct about intangible assets that have an indefinite life span?
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

Intangible assets with an indefinite life span are expected to continue providing economic benefits for the foreseeable future, but management may not be able to estimate their exact life span. They do not have fixed and determinable cash flows, which is a characteristic of tangible assets. While the asset may technically be infinite, it is not appropriate to use the term "infinite lived asset" in accounting terminology.

Which of the Following Statements Is Correct About Intangible Assets