Which statement is not correct?
A)Assessing the useful life of an intangible asset requires professional judgment.
B)The residual value of an intangible asset is the same as the asset's salvage value.
C)The straight-line method of amortization is generally used for intangible assets.
D)The straight-line method of amortization achieves an equal pattern of cost allocation.

Question

Quizplus · Accepted Answer

The residual value of an intangible asset is not necessarily the same as its salvage value. While both terms refer to the estimated value of the asset at the end of its useful life, residual value pertains specifically to intangible assets that have no physical form or market value, such as patents or copyrights. Salvage value typically applies to tangible assets that can be sold for their parts or materials, such as machinery or equipment.

Which Statement Is Not Correct