Justification for Having Both Intangible Assets and Other Assets Listed

question 21

Multiple Choice

Justification for having both intangible assets and other assets listed on a balance sheet include

• A)that intangible assets have no physical existence and other assets are deferred charges
• B)that having more items listed on the balance sheet improves the users' understanding of the company
• C)that the intangible assets are more important than the tangible assets
• D)that the other asset classification is important because goodwill cannot be amortized, so it needs to be recorded on the balance sheet

---

Definitions:

Commodities Market

A physical or virtual marketplace for buying, selling, and trading raw or primary products, such as metals, oil, and grains.

Annual Return

The percentage of profit or loss on an investment over a one-year period.

Interest Rate

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal.

Entrepreneurial Innovation

The process by which an entrepreneur designs, develops, and brings to the market a novel product or service that potentially changes industry patterns or consumer habits.