An intangible asset
A)derives its value from the rights and privileges it provides the owner.
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.

Question

Quizplus · Accepted Answer

Intangible assets derive their value from the rights and privileges they provide to the owner, such as patents, trademarks, and copyrights. They are recognized on the balance sheet despite lacking physical substance.

An Intangible Asset