According to Accounting Standards, the Costs of Intangible Assets with an Indefinite

question 4

Multiple Choice

According to accounting standards, the costs of intangible assets with an indefinite life, such as goodwill, should:

• A) not be amortized, but should be reviewed annually for impairment.
• B) be reported on the statement of retained earnings in the year in which it is acquired.
• C) be amortized over a reasonable period of time not to exceed 40 years.
• D) be debited to an expense account entirely in the year in which acquired.