Current accounting standards indicate that the costs of intangible assets with an indefinite life,such as goodwill,should
A)not be amortized.
B)be reported on the statement of retained earnings in the year in which acquired.
C)be amortized over a reasonable period of time not to exceed 40 years.
D)increase an expense account entirely in the year in which acquired.

Question

Quizplus · Accepted Answer

According to current accounting standards, the costs of intangible assets with an indefinite life, such as goodwill, should not be amortized. Instead, they should be tested at least annually for impairment and any impairment losses should be recognized in the income statement.

Current Accounting Standards Indicate That the Costs of Intangible Assets