Which of the following represents the maximum amortization period mandated by current generally accepted accounting principles for amortizable intangible asset?
A) 10 years
B) 20 years
C) 40 years
D) No arbitrary cap on the useful life of amortizable intangible assets has been established.

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP) do not establish an arbitrary maximum period for the amortization of intangible assets. Instead, the amortization period should reflect the asset's useful life, which can vary significantly depending on the nature of the asset and the specifics of the business.

Which of the Following Represents the Maximum Amortization Period Mandated