Which of the Following Is Not a Characteristic of Intangible

question 17

Multiple Choice

Which of the following is not a characteristic of intangible assets?

• A)Intangibles do not have physical substance.
• B)Intangibles benefit more than one year.
• C)Intangibles have fixed determinable cash flows.
• D)Intangibles are held for use in the ordinary course of business.

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Definitions:

Payback Periods

The duration of time it takes to recover the cost of an investment through the investment's cash flows.

Risks

The potential for losing something of value or the chance of an adverse outcome.

Hurdle Rate

The minimum acceptable rate of return on an investment, used as a benchmark for deciding whether to pursue a project.