An Intangible Asset

question 8

Multiple Choice

An intangible asset

• A)derives its value from the rights and privileges it provides the company.
• B)is worthless because it has no physical substance.
• C)is converted into a tangible asset during the year.
• D)cannot be classified on the statement of financial position because it lacks physical substance.

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Definitions:

American Put Option

A type of option that allows the holder to sell an asset at a specified price at any time before the expiration date.

Call Option

An agreement in finance that grants the purchaser the option, without the mandate, to acquire a security, bond, commodity, or different asset at a pre-determined price during a defined timeframe.

Variance

The average squared deviation between the actual return and the average return.