Long-Lived Assets That Are Intangible in Nature, Used in the Operations

question 59

True/False

Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets.

---

Definitions:

Useful Life

The estimated period of time that an asset is expected to be used by an entity, affecting its depreciation calculation.

Declining-Balance Method

The declining-balance method is an accelerated depreciation technique that applies a constant rate of depreciation to an asset's book value each year, resulting in decreasing depreciation expenses over time.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Declining-Balance

A method of accelerated asset depreciation where the depreciation expense decreases over time.