Intangible Assets

question 47

Multiple Choice

Intangible assets

• A) should be reported under the heading Property Plant and Equipment.
• B) are not reported on the balance sheet because they lack physical substance.
• C) should be reported as Current Assets on the balance sheet.
• D) should be reported as a separate classification on the balance sheet.

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Definitions:

Inventory method

An accounting approach used to value and manage the inventory of a business, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average cost methods.

Updated inventory value

The revised total cost or market value of all inventory items a company holds, adjusted for additions, subtractions, and valuation changes over a specific period.

LIFO method

Last In, First Out; an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Periodic system

An inventory valuation method where updates to inventory records are made on a periodic basis, usually at the end of an accounting period.