The amortization of intangible assets applies to ________.
A) Research and Development Costs
B) Goodwill
C) intangible assets with definite lives
D) intangible assets with indefinite lives

Question

Quizplus · Accepted Answer

The amortization of intangible assets applies to intangible assets with definite lives, which can be estimated with reasonable certainty. This includes intangible assets such as patents, copyrights, and trademarks, which have a limited lifespan and can be reliably measured over time. Goodwill and research and development costs are not subject to amortization. Goodwill is instead subject to impairment testing and research and development costs are immediately expensed as incurred. Intangible assets with indefinite lives are also not subject to amortization, but instead are subject to periodic impairment testing.

The Amortization of Intangible Assets Applies to ________