An Intangible Asset Should

question 116

Multiple Choice

An intangible asset should

• A) be expensed immediately if it has a finite life.
• B) not be amortized if it has an indefinite life.
• C) be grouped together with property plant, and equipment for reporting purposes.
• D) be depreciated over its useful life or legal life, whichever is longer.

---

Definitions:

Fixed Cost

The costs that remain constant in total regardless of changes in the level of activity within a relevant range.

Budgeted Cash Disbursements

A projection or forecast of cash payments that a business expects to make over a specific period.

Cash Budget

A financial plan that projects cash inflows and outflows over a specific period, helping manage liquidity and ensure financial stability.

Expense Budget

A forecast of a company's expected operating expenses for a specific period.