Companies should test indefinite life intangible assets at least annually for
A) recoverability.
B) amortization.
C) impairment.
D) estimated useful life.

Question

Quizplus · Accepted Answer

Indefinite life intangible assets, such as brand names or goodwill, are not amortized like finite life assets. Instead, they must be tested for impairment. This is done to make sure that the asset's value has not decreased to the point where it is worth less than its carrying value on the balance sheet. Therefore, companies should test indefinite life intangible assets at least annually for impairment.

Companies Should Test Indefinite Life Intangible Assets at Least Annually