Question

For companies using gaap, they should characterize their intangible assets as either

a.specifically identifiable or goodwill-type.
b.legally restricted or goodwill-type.
c.limited-life or indefinite-life.
d.amortizable or unamortizable

Answer 1

The correct option is C.
GAAP stands for Generally Acceptable Accounting Principles. Under the US GAAP, intangible asset are classified either as limited life or indefinite life.
Intangible assets of a company are those assets that are corporate intellectual properties which lack physical substance. Examples are patent, trade name, franchise and copyrights.