US GAAP Requires Straight-Line Amortization of Finite-Life Intangible Assets Over

question 42

True/False

U.S. GAAP requires straight-line amortization of finite-life intangible assets over the useful life or legal life, whichever is shorter.

---

Definitions:

Balance Sheet

An inventory of a company's financial resources, debts, and shareholders' stake, captured at a particular moment.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net income or loss.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits.

Permanent Account Balances

The ongoing balances in balance sheet accounts that are carried over from one accounting period to the next.