Which of the following methods is used to amortize intangible assets over their useful lives?

A) declining balance
B) straight line
C) annual review for impairment
D) none of these since intangible assets are not amortized

Question

Krushang Bhatt · Accepted Answer

Final Answer : B, Explanation :  Intangible assets are amortized over their useful lives using the straight-line method, which evenly spreads the cost of the asset over its estimated useful life. Option A, declining balance method, is used for depreciating tangible assets. Option C, annual review for impairment, is used to test whether intangible assets are still valuable and useful, but it does not pertain to the amortization process. Option D is incorrect because intangible assets, such as patents and trademarks, are amortized over their useful lives, just like tangible assets are depreciated.

Which of the following methods is used to amortize intangible assets over their useful lives?

A) declining balance
B) straight line
C) annual review for impairment
D) none of these since intangible assets are not amortized

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Learning Objectives

Related questions

Which of the following methods is used to amortize intangible assets over their useful lives?A) declining balanceB) straight lineC) annual review for impairmentD) none of these since intangible assets are not amortized

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following methods is used to amortize intangible assets over their useful lives?

A) declining balance
B) straight line
C) annual review for impairment
D) none of these since intangible assets are not amortized