An Intangible Asset

question 148

Multiple Choice

An intangible asset

• A)does not have physical substance, yet often is very valuable.
• 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.

---

Definitions:

Voidable Preference

A legal term referring to a payment or asset transfer made by a debtor that can be invalidated by a bankruptcy trustee under certain conditions.

Insider

An individual with access to confidential information about a company, often an employee or executive, which can affect financial decisions or market performance.

Liquidation

The process of converting a company's assets into cash to pay off creditors before ceasing operations or redistributing assets to shareholders.

Security Interest

A legal claim or lien on collateral that secures the repayment of a debt or performance of some other obligation.