How Should Intangible Assets Be Disclosed on the Balance Sheet

question 104

Multiple Choice

How should intangible assets be disclosed on the balance sheet?

• A)As a reduction of stockholders' equity
• B)At cost in the Current Assets section
• C)At the estimated market value at the balance sheet date
• D)Net of the costs already amortized

---

Definitions:

Annual Rate

The yearly rate of interest or growth, often applied to loans, investments, and savings accounts.

Treasury Bill

A short-term government security issued at a discount from the face value and matures to its full value at the end of the term.

Simple Interest

Interest determined just on the base amount, not including compounded interest.

Maturity

The point in time when the principal amount of a loan, bond, or other financial instrument becomes due and is to be paid or settled.