On the balance sheet, a company should report the cost of intangible assets:
A)in the current assets section.
B)as an amount owed to shareholders.
C)as an amount that is estimated by the CFO.
D)at acquired cost less any accumulated amortization.

Question

Quizplus · Accepted Answer

Intangible assets should be reported on the balance sheet at their acquired cost less any accumulated amortization. This is in line with generally accepted accounting principles (GAAP) and provides a more accurate representation of the value of the assets to the company. Reporting the estimated cost or treating it as an amount owed to shareholders would not be in compliance with GAAP. Additionally, intangible assets typically do not belong in the current assets section, as they are not expected to be converted into cash within the next year.

On the Balance Sheet, a Company Should Report the Cost