Which amortization method should be used for intangibles that are amortized?
A)a method based on the expected pattern of benefits to be produced by the asset
B)a method based on an annual review for impairment
C)the straight-line method; all others are inappropriate
D)any method is appropriate

Question

Quizplus · Accepted Answer

The most appropriate amortization method for intangibles is one that is based on the expected pattern of benefits to be produced by the asset. This ensures that the expense recognized each period reflects the benefit received from the asset, and is in line with the matching principle in accounting. The other options listed may not accurately reflect the economic benefits of the asset and do not align with generally accepted accounting principles (GAAP). Therefore, choice A is the best option.

Which Amortization Method Should Be Used for Intangibles That Are