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.

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Definitions:

Low-Income Borrowers

Individuals or households with low income levels who may face difficulties in obtaining loans or are considered high risk by lenders.

Legal Interest Rate

The maximum rate of interest that lenders can legally charge borrowers, often set by law or regulation.

Economic Profits

Profits that exceed the opportunity costs of all resources used by a firm, including both explicit and implicit costs.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, as recorded in the financial statements.