Asked by Mayrelis Padron on May 28, 2024
Verified
An intangible asset
A) derives its value from the rights and privileges it provides the company.
B) is worthless because it has no physical substance.
C) is converted into a tangible asset during the year.
D) cannot be classified on the statement of financial position because it lacks physical substance.
Intangible Asset
This is an asset that lacks physical substance, such as patents, trademarks, and goodwill, yet offers economic value to its owner.
Physical Substance
Refers to tangible assets that have a concrete form and can be touched, as opposed to intangible assets.
Rights
Entitlements or privileges granted, typically to shareholders, such as the right to buy additional shares in certain circumstances.
- Elaborate on the depreciation method for property, plant, and equipment and evaluate the worth of intangible assets.
- Understand the distinction between physical and intangible assets and their presentation in financial reports.
Verified Answer
Learning Objectives
- Elaborate on the depreciation method for property, plant, and equipment and evaluate the worth of intangible assets.
- Understand the distinction between physical and intangible assets and their presentation in financial reports.
Related questions
Office Equipment Is Classified on the Statement of Financial Position ...
The Depreciable Cost of a Plant Asset Is Its Original ...
A Machine Costing $185,000 with a 5-Year Life and $20,000 ...
Golden Sales Has Bought $135,000 in Fixed Assets on January ...
Machinery Is Purchased on July 1 of the Current Fiscal ...