A Trademark Should Be Amortized Over Its Estimated Life

question 39

True/False

A trademark should be amortized over its estimated life.

---

Definitions:

Endowment Contribution

Funds given to an institution, often a nonprofit or educational entity, with stipulations that the principal be maintained permanently and only the investment income be used.

Inventories Valuation

The method used to assess the cost or market value of inventories a company holds at the end of a financial period to ensure accurate financial reporting.

Nominal Charge

A minimal or symbolic fee often charged to meet legal requirements rather than to cover the cost of services.

Consumption

The use of goods and services by households.