Under AASB 138 Intangible Assets,an Intangible Asset with an Indefinite

question 5

Multiple Choice

Under AASB 138 Intangible Assets,an intangible asset with an indefinite useful life is:

• A)not able to be recognised as an asset.
• B)not subject to annual amortisation charges.
• C)amortised using the straight-line method over a period of no more than 20 years.
• D)amortised using the reducing balance method over a period not exceeding 5 years.

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Definitions:

Adjustments

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Worksheet

An informal document used by accountants to prepare adjusting journal entries and to support the preparation of financial statements.

Beginning Inventory

The market value of products prepared for sale at the initiation of a bookkeeping period.

Merchandise Inventory

Goods or products that a company holds for the purpose of resale to customers, recorded as a current asset on the balance sheet.