An Intangible Asset Should

question 53

Multiple Choice

An intangible asset should

• A) not be amortized if it has an finite life.
• B) not be amortized if it has an indefinite life.
• C) be amortized over its legal or useful life, whichever is longer.
• D) be amortized over 5 years or less.

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Definitions:

Public

The general population or community at large, often referenced in the context of public companies, public offering, or information accessibility.

Contributed Surplus

The amount of money in excess of the par value of shares that shareholders have contributed to a company.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested into the business.

Repurchase Shares

the act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.