Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
A company acquires a 5-year license for a product it intends to sell indefinitely. The license can be renewed at minimal cost. How should the license be accounted for?
A
Recorded on the balance sheet at historical cost.
B
Amortized using the straight-line method over its estimated useful life.
C
Amortized using the units-of-production method over its estimated useful life.
