Which of the Following Is Not a Characteristic of an Intangible

question 48

Multiple Choice

Which of the following is not a characteristic of an intangible asset which distinguishes it from a tangible asset?

• A)generally a higher degree of uncertainty regarding the future benefit that may be derived
• B)value is subject to narrower fluctuations because it is less sensitive to competitive conditions
• C)may have value to only a particular company
• D)an intangible with an indefinite life is not expensed

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Definitions:

Accounts Payable

Liabilities representing amounts owed by an entity to suppliers or creditors for goods or services received but not yet paid for.

Multiple-Step Income Statements

A detailed financial statement that separates operating revenues and expenses from non-operating ones, showcasing multiple layers of profitability.

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the U.S.

IASB

Stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs).