An Intangible Asset

question 125

Multiple Choice

An intangible asset

• A)derives its value from the rights and privileges it provides the owner.
• B)is worthless because it has no physical substance.
• C)is converted into a tangible asset during the operating cycle.
• D)cannot be classified on the balance sheet because it lacks physical substance.

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Definitions:

Client-Visits

The number of times clients or customers visit a business or service provider within a given time period.

Planning Budget

A budget prepared for a specific level of activity; it may be adjusted as activity levels change.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive staff and office supplies.

Client-Visits

The act of meeting with clients or customers in person for business purposes, such as discussing projects, services, or sales.