Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)A patent with a useful life of 5 years and a legal life of 10 years is amortized over 5 years.
_____ b)Intangible assets with indefinite useful lives must be tested each year for impairment.
_____ c)If it is determined that the original value recorded for goodwill is too high,then an entry is made directly to Retained Earnings,reducing the balance in this account.
_____d)The entry to recognize an impairment loss on goodwill includes a debit to Amortization Expense and a credit to Goodwill.
_____e)The recognition of an impairment loss involves a cash outflow classified as a financing activity.