Which of the Following Statements About Intangible Assets Is INCORRECT

question 262

Multiple Choice

Which of the following statements about intangible assets is INCORRECT?

• A)They are capital assets that have no physical substance.
• B)Intangibles with finite lives are amortized but not tested for impairment.
• C)Intangibles with infinite lives are not amortized but are tested for impairment.
• D)Internally recognized intangibles are never recognized on the statement of financial
• Position.

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Definitions:

Incentive Obstacles

Challenges that arise when the incentives of different parties involved are not aligned, potentially leading to conflicts or inefficiencies.

Supply Chain Profits

The total profit or financial gain generated through the integrated activities of procuring materials, transforming them into finished goods, and delivering them to customers.

Variability

The quality of being subject to change or variance in a process or outcome, often impacting predictability and consistency.

Uncoordinated Supply Chain

A supply chain where the actions and operations of participants are not synchronized, leading to inefficiencies and potential disruptions.