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:

Nonreactive

Describes a substance or material that does not chemically react under a set of given conditions.

Reactive

describes a response or behavior that is made in reaction to a stimulus or situation, rather than initiating action independently.

Ultimate Attribution Error

A cognitive bias where positive behaviors from one's in-group are attributed to their character, while negative behaviors are dismissed as situational, and the opposite is applied to out-groups.

Fundamental Attribution Error

is the cognitive bias that leads individuals to attribute others' actions to their character or personality while underestimating situational influences.