Intangible Assets Are Rights, Privileges, and Competitive Advantages That Result

question 28

Multiple Choice

Intangible assets are rights, privileges, and competitive advantages that result from the ownership of assets that

• A)must be generated internally.
• B)are depletable natural resources.
• C)have been exchanged at a gain.
• D)do not possess physical substance.

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Definitions:

Working Capital

A measure of a company's short-term financial health and operational efficiency, calculated as current assets minus current liabilities.

Accrual

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, a critical component in lease accounting.