Intangible Assets Are the Rights and Privileges That Result from Ownership

question 68

Multiple Choice

Intangible assets are the rights and privileges that result from ownership of long-lived 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:

Balance Sheet

A financial statement that displays a company's assets, liabilities, and stockholders' equity as of a specific date, showing the company's financial position.

Sole Proprietorship

A business structure owned by a single individual, where the owner and the business are legally considered the same.

Drawing Account

An account used to record the amounts withdrawn by an owner from the business for personal use.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.