Which of the Following Statements Regarding Intangible Assets Is NOT

question 97

Multiple Choice

Which of the following statements regarding intangible assets is NOT true?

• A)Intangible assets are long-lived assets with no physical form.
• B)Intangible assets are recorded at their acquisition cost.
• C)Intangible assets with a finite life are not amortized.
• D)Intangible assets with an indefinite life are not amortized.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or bond itself, often used as a legal capital measurement.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Cumulative Preferred Stock

Stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Cash Dividends

A disbursement of profits from a company to its owners or investors, usually as a profit-sharing mechanism.