Asked by Mugan Tayalan on May 30, 2024
Verified
Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets.
Intangible Assets
Non-physical assets owned by a business, such as patents, copyrights, trademarks, and goodwill, that provide economic benefits.
Fixed Assets
Long-term tangible assets held for business use and not expected to be converted into cash in the short term, such as buildings, machinery, and vehicles.
- Pinpoint the correct arrangement of assets in the balance sheet.
Verified Answer
CW
colette walkerMay 31, 2024
Final Answer :
False
Explanation :
The definition given in the statement pertains to intangible assets, which are a subset of fixed assets. Therefore, the statement is false as it conflates the two terms.
Learning Objectives
- Pinpoint the correct arrangement of assets in the balance sheet.