Which of the Following Statements Is True with Respect to Intangible

question 41

Multiple Choice

Which of the following statements is true with respect to intangible assets with indefinite lives?

• A)They should be amortized over a period of 40 years.
• B)They should be expensed to income in the year they are acquired.
• C)They should be evaluated each year to determine if there has been any impairment in their value.
• D)They are never amortized or written down but remain on the company's balance sheet at their original cost forever.

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Definitions:

Highway Tractor

A type of heavy-duty vehicle designed primarily for hauling trailers over long distances on highways.

Tandem Drive

Tandem drive refers to a vehicle configuration where two sets of drive axles are arranged in a row, commonly seen in heavy-duty trucks, to distribute weight and increase traction.

Axles

Mechanical components that connect wheels on opposite sides of a vehicle, transferring power from the drivetrain to the wheels for movement.

Freight Volume

The amount of goods, cargo, or freight being transported or capable of being transported.