An Intangible Asset

question 189

Multiple Choice

An intangible asset

• A) does not have physical substance yet often is very valuable.
• B) is worthless because it has no physical substance.
• C) is converted into a tangible asset during the operating cycle.
• D) cannot be classified on the balance sheet because it lacks physical substance.

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Definitions:

Annual Salary

The total amount of money earned by an employee on a yearly basis, excluding bonuses, overtime, or other extra payments.

Value Increases

Situations in which the worth of an asset or investment rises over time.

Classic Automobile

A vehicle of significant historical interest, typically older models that are collected, preserved, or restored for their nostalgic value and beauty.

Simple Interest

The calculation of interest on the principal amount only, without compounding over time.