An intangible asset should
A) be expensed immediately if it has a finite life.
B) not be amortized if it has an indefinite life.
C) be grouped together with property plant, and equipment for reporting purposes.
D) be depreciated over its useful life or legal life, whichever is longer.

Question

Quizplus · Accepted Answer

Intangible assets with an indefinite life should not be amortized. Instead, they are tested annually for impairment. Amortization applies to intangible assets with a finite life, while depreciation is for tangible assets. Intangible assets are reported separately from property, plant, and equipment on the balance sheet.

An Intangible Asset Should