The cost of a patent should be amortized over its legal life or useful life, whichever is shorter.

A characteristic of a plant asset is that it is

not currently used in the business but held for future use.

intangible.

used in the operations of a business.

held for sale in the ordinary course of the business.

The cost of a patent should be amortized over its legal life or useful life, whichever is shorter.

True

False

Intangible assets

are not reported on the balance sheet because they lack physical substance.

should be reported under the heading Property, Plant, and Equipment.

should be reported as a separate classification on the balance sheet.

should be reported as Current Assets on the balance sheet.

Depreciation is a process of

cost accumulation.

cost allocation.

asset valuation.

asset devaluation.