The Accounting Life of Intangible Assets Is Determined by

question 29

Multiple Choice

The accounting life of intangible assets is determined by

• A)their legal lives.
• B)their useful lives.
• C)their legal lives or useful lives,whichever is shorter.
• D)the tax life mandated by the IRS.

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Definitions:

Metal Ores

Naturally occurring minerals from which metals can be extracted economically.

Amortization

Amortization refers to the process of gradually writing off the initial cost of an asset over a period.

Expense Account

An account that records the costs of operating a business.

Land

An asset representing the ground or property on which a business operates, not subject to depreciation.