Question

Under current GAAP, intangible assets are classified as Group of answer choices

Answer 1

Under current GAAP, intangible assets are classified as limited life or indefinite life.

Option: C

Explanation:

GAAP stands for Generally Accepted Accounting Principles which is the standard accounting principles adopted by the U.S. Securities and Exchange Commission. It generally clarify, make consistent and comparable all the financial information.

Intangible assets are those whose life span or longevity is limited and indefinite. It is not physical in nature. Example of intangible resource are copyright, good will etc. Intellectual property is also a type of it. Such as design. Reputation, knowledge can also be considered as tangible asset.