Answer the following statements true (T) or false (F)
1. An intangible asset is an asset with no physical form that is valuable because of the special rights it carries.
2. The intellectual property of a business is easy to measure.
3. Impairment of an intangible asset occurs when the book value of an asset is less than the fair value.
4. Amortization is the process by which businesses spread the allocation of an intangible asset's cost to expense over its useful life.
5. Intangibles with an indefinite life are tested for impairment annually.
1. TRUE
2. FALSE
Explanation: The intellectual property of a business is difficult to measure.
3. FALSE
4. TRUE
5. TRUE
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