Which of the Following Statements About Intangible Assets Is INCORRECT

question 89

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 indefinite 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:

Imaginary Unit

A mathematical constant represented by \(i\), defined as the square root of -1, which is the basis for complex numbers.

Standard Form

A way of writing equations, such as for a line \(Ax + By = C\), where \(A\), \(B\), and \(C\) are constants.

Standard Form

A way of writing down very large or very small numbers conveniently, also specifically referring to the general representation of a linear equation as Ax + By = C.

Multiply

A mathematical operation that combines two quantities to produce a product.