Which of the following statements regarding intangible assets is true?
A)The expected useful life of an intangible asset is generally easier to estimate than the expected useful life of a tangible noncurrent asset.
B)The cost of an intangible asset is not permitted to be amortized for income tax purposes.
C)Intangible assets have a lower degree of uncertainty with regard to their expected future benefits than tangible noncurrent assets.
D)The accumulated amortization for intangible assets that are amortized must be disclosed.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), the accumulated amortization for intangible assets that are being amortized must be disclosed in the financial statements. Choice A is incorrect because estimating the useful life of an intangible asset can be difficult due to the uncertainty of its future benefits. Choice B is also incorrect because the cost of an intangible asset is amortized for income tax purposes. Choice C is incorrect because the degree of uncertainty of future benefits can be higher for intangible assets as they are often dependent on customer preferences and external factors.

Which of the Following Statements Regarding Intangible Assets Is True