Final answer:
In accounting, a trademark's life is indefinite due to the possibility of perpetual renewal as long as the trademark is in active use.
Step-by-step explanation:
In the context of accounting, the life of a trademark is considered indefinite. A trademark is an important identifying symbol or name that signifies a specific good or brand, like the examples of Chiquita bananas, Chevrolet cars, or the Nike "swoosh". Since a trademark can be renewed repeatedly as long as it continues to be used actively by the firm, it doesn't have a predetermined expiration date; hence, its life is not regarded as finite.
It's important to note the distinction for accounting purposes because this affects how trademarks are recorded on the balance sheet. If the life of a trademark were considered definite, it would be amortized over its useful life. However, because trademarks have an indefinite life span as long as they are in use, they are not amortized but rather tested for impairment annually. In accounting terminology, the life of a trademark is considered to be indefinite. This reflects their potential for perpetual renewal.