Which of the Following Assets Is Not Considered to Have

question 98

Multiple Choice

Which of the following assets is not considered to have an indefinite useful life?

• A) copyright
• B) goodwill
• C) renewable franchise
• D) trademark

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Periodic Inventory System

An accounting method that determines inventory levels and cost of goods sold at the end of an accounting period through physical counting.

Purchases Discounts

Reductions in price given by suppliers on goods and services purchased, typically awarded for early payment.

Freight In

Costs associated with getting raw materials, goods, and merchandise transported from suppliers to a company, treated as part of inventory cost.