Intangible Assets

question 47

Multiple Choice

Intangible assets

• A) should be reported under the heading Property Plant and Equipment.
• B) are not reported on the balance sheet because they lack physical substance.
• C) should be reported as Current Assets on the balance sheet.
• D) should be reported as a separate classification on the balance sheet.

---

Definitions:

Gratuitous

Referring to something given without expecting anything in return, often related to acts of kindness or voluntary transactions without compensation.

Preexisting Duty

A legal concept indicating that if someone is already legally obligated to perform a certain action, that action cannot be used as consideration for a new contract.

Consideration

The value (such as money, goods, or services) that is given in exchange for a contractual promise or action.

Consideration

The value, such as money, promised, given, or done that induces a party to enter into a contract.