Indicate Whether Each of the Following Statements Is True or False

question 130

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)A patent with a useful life of 5 years and a legal life of 10 years is amortized over 5 years.
_____ b)Intangible assets with indefinite useful lives must be tested each year for impairment.
_____ c)If it is determined that the original value recorded for goodwill is too high,then an entry is made directly to Retained Earnings,reducing the balance in this account.
_____d)The entry to recognize an impairment loss on goodwill includes a debit to Amortization Expense and a credit to Goodwill.
_____e)The recognition of an impairment loss involves a cash outflow classified as a financing activity.

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Definitions:

Supplies

Materials, goods, or equipment required for the operation of a business or for completing a specific task.

Stationery

Writing materials and office supplies, such as paper, envelopes, and writing instruments, used for personal and business correspondence.

Support Product

Ancillary products or services that complement the main product or service offering, enhancing its value or utility.

Industrial Services

Services provided to businesses or industries, such as maintenance, cleaning, consulting, and logistics, rather than individual consumers.