Which of the Following Statements Is Correct About Intangible Assets

question 68

Multiple Choice

Which of the following statements is correct about intangible assets that have an indefinite life span?

• A)This is an infinite lived asset.
• B)The asset is expected to continue providing economic benefits for the foreseeable future.
• C)Management does not know how long the asset is expected to provide economic benefits.
• D)The asset has fixed and determinable cash flows.

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Definitions:

Starting Point

The initial position or phase from where a process, project, or calculation begins.

Expected Future Net Income

An estimate of the net profits or losses a company anticipates generating in the future.

Continuous Budgeting

A financial planning approach where a rolling budget for a future period is continuously updated.

Full Year Ahead

Refers to forecasting or planning activities for the next complete fiscal year.