An Intangible Asset

question 47

Multiple Choice

An intangible asset

• A) derives its value from the rights and privileges it provides the owner.
• B) is a liability because it has no physical substance.
• C) is never amortized because it has an indefinite life.
• D) cannot be classified on the balance sheet because it lacks physical substance.

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Definitions:

Components

Fundamental parts or elements that combine to form a whole system or structure.

Attribute

A quality or feature regarded as a characteristic or inherent part of someone or something.

Social Influence

An interaction process in which one person’s behavior causes another person to change an opinion or to perform an action that he or she would not otherwise do.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.