Which of the Following Statements Is True Concerning Intangible Assets

question 101

Multiple Choice

Which of the following statements is true concerning intangible assets?

• A)Intangible assets have no economic substance.
• B)Intangible assets lack physical existence.
• C)Intangible assets are listed in the Stockholders' Equity section of the balance sheet.
• D)Intangible assets appear in the Current Assets section of the balance sheet.

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Definitions:

Straight-Line Method

A method of calculating depreciation or amortization by evenly dividing the asset’s cost over its useful life.

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered after its use is completed.

Monthly Depreciation

The portion of an asset’s cost that is expensed each month over its useful life.

Old Plant Asset

An asset that has been in use for a considerable period and is often nearing the end of its useful life.