The Acquisition Cost of an Intangible Asset Should Be Charged

question 69

True/False

The acquisition cost of an intangible asset should be charged to expense over the shorter of its legal or useful life.

---

Definitions:

Enforceable

Capable of being imposed or upheld by law, referring to contracts, agreements, or rules that can be legally compelled.

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.

Enforceable Contract

A binding legal agreement between two or more parties that is recognized by the law and has elements of offer, acceptance, consideration, and mutual consent.