Which of the following statements regarding intangible assets is NOT correct?
A) Intangible assets represent long-term rights and privileges of a nonphysical nature.
B) Intangible assets should be amortized over a period not to exceed 40 years.
C) Intangible assets must be tested regularly to determine if their value has been impaired.
D) A trademark is an example of an intangible asset.

Question

Quizplus · Accepted Answer

Intangible assets should be amortized over their useful life, which may be different from 40 years depending on the asset type. For example, a patent may be amortized over 20 years, while a trademark may not have a definite useful life and may not be amortized at all.

Which of the Following Statements Regarding Intangible Assets Is NOT