Intangible Assets

question 138

Multiple Choice

Intangible assets

• A)must be reported under the heading Property, Plant, and Equipment.
• B)are not reported on the statement of financial position because they lack physical substance.
• C)should be reported as Current Assets on the statement of financial position.
• D)should be reported separately from Property, Plant, and Equipment.

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Definitions:

Public Utilities

Companies that provide essential services such as water, electricity, and telecommunications to the public, usually subject to government regulation.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operations and output increases.

Making a Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, taxes, and costs associated with maintaining the operation.

Breaking Even

The point at which total costs and total revenue are equal, meaning no net loss or gain has been made.