Intangible Assets Are

question 68

Multiple Choice

Intangible assets are

• A) listed under current assets on the balance sheet.
• B) not listed on the balance sheet because they do not have physical substance.
• C) long-lived assets that are often very valuable.
• D) listed as a long-term investment on the balance sheet.

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Definitions:

Outstanding Shares

Refers to the total number of shares of stock that are currently owned by shareholders, including those held by institutional investors and company insiders.

Fair Value

The payment one could achieve by divesting an asset or the liability assumed in an exchange among market actors on the designated evaluation date.

Acquisition

The process by which one company takes over another, either through the purchase of its shares or assets.

Journal Entries

The method used in accounting to record all the financial transactions of a business, ensuring every credit entry is matched with a debit entry.