Asked by Andro Meikhaeil on May 12, 2024
Verified
Intellectual property assets are:
A) depreciated.
B) depleted.
C) amortized.
D) expensed.
Intellectual Property
encompasses creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.
Amortized
The process of gradually reducing a debt through regular payments over a specified period of time, typically involving both principal and interest.
- Acquire knowledge on the management of intangible assets in accounting, focusing on amortization, impairment, and write-offs.
Verified Answer
MS
Manpreet SangerMay 13, 2024
Final Answer :
C
Explanation :
Intellectual property assets are typically amortized over their useful life because they are intangible assets. Amortization is the process of gradually writing off the initial cost of an intangible asset over a period of time, reflecting the asset's consumption, expiration, obsolescence, or other decline in value as a result of use or the passage of time.
Learning Objectives
- Acquire knowledge on the management of intangible assets in accounting, focusing on amortization, impairment, and write-offs.