Which Statement Is Not Correct

question 53

Multiple Choice

Which statement is not correct?

• A)Assessing the useful life of an intangible asset requires professional judgment.
• B)The residual value of an intangible asset is the same as the asset's salvage value.
• C)The straight-line method of amortization is generally used for intangible assets.
• D)The straight-line method of amortization achieves an equal pattern of cost allocation.

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Definitions:

Ownership

The state or fact of legal possession and control over property, which can include both tangible assets like real estate and intangible ones like intellectual property.

Stock

Shares of ownership in a corporation, representing a claim on part of its assets and earnings.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Income Statement

A financial report that outlines a company's revenues, expenses, and profits over a specific period, typically a quarter or year, to show its performance.