Intangible Assets Are the Rights and Privileges That Result from Ownership

question 262

Multiple Choice

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

• A) must be generated internally.
• B) are depreciable natural resources.
• C) have been exchanged at a gain.
• D) do not have physical substance.

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Definitions:

Incremental Cash Flows

The additional cash flow generated by a company from undertaking a particular project or investment.

New Venture

Refers to a newly established business entity created with the intention of entering a market.

Opportunity Cost

The financial loss involved in not selecting the subsequent top preference during the decision-making process.

Cash Flow Estimate

An approximation of the amount of money expected to move in and out of a business within a specific time period.