Which of the following statements regarding intangible assets is not correct?
A) Intangible assets represent long-term rights and privileges of a nonphysical nature.
B) A trademark is an example of an intangible asset.
C) Intangible assets must be tested regularly to determine if their value has been impaired.
D) Intangible assets should be amortized over a period not exceed 40 years.

Question

Quizplus · Accepted Answer

Intangible assets should be amortized over their useful life, which can exceed 40 years. The exact lifespan of an intangible asset depends on the nature of the asset and other factors such as legal or regulatory restrictions. Therefore, statement D is not correct.

Which of the Following Statements Regarding Intangible Assets Is Not