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 10 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 Impairment Loss and a credit to Goodwill.
_____ e) The recognition of an impairment loss involves a cash outflow classified as a financing activity.