Indicate Whether Each of the Following Statements Is True or False

question 120

Short Answer

Indicate whether each of the following statements is true or false.
1. Goodwill is classified as part of Property, Plant, and Equipment
2. Long-term assets having no physical substance are called intangible assets
3. Land is classified separately from other tangible assets because the cost is normally much higher
4. Natural resources are examples of tangible long-term assets
5. Equipment is an example of an intangible asset

---

Definitions:

Valid Defense

A legitimate legal reason presented in a court to counteract or negate allegations made in a lawsuit.

Drawer

In financial contexts, the person who writes or issues a check or draft instructing a bank to pay a specified amount of money to a named party.

Drawee

The party upon whom a cheque, draft, or other negotiable instrument is drawn and who is responsible for its payment.

Maker

In financial terms, the party that promises to pay a certain amount of money in a promissory note or check.