Factors That Should Be Considered in Determining the Useful Life

question 33

Multiple Choice

Factors that should be considered in determining the useful life of an intangible asset include

• A) Legal, regulatory, or contractual provisions.
• B) The residual value of the asset.
• C) The entity's expected use of the intangible asset.
• D) The effects of obsolescence, competition, and technological change.
• E) All of these choices are used in determining the useful life of an intangible asset.

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Definitions:

Cumulative Frequency

The sum of a given frequency and all frequencies so far in a frequency distribution.

Cumulative Relative Frequency

A statistical measure showing the sum of the relative frequency of all values less than or equal to a specific value, often used to understand the distribution of data points within a dataset.

Percent Frequency Distribution

A tabular summary of data showing the percentage of observations in each of several nonoverlapping classes.

Bar Chart

A graphical device for depicting categorical data that have been summarized in a frequency, relative frequency, or percent frequency distribution.