Intangible assets
A) should be reported under the heading Property Plant and Equipment.
B) are not reported on the balance sheet because they lack physical substance.
C) should be reported as Current Assets on the balance sheet.
D) should be reported as a separate classification on the balance sheet.

Question

Quizplus · Accepted Answer

Intangible assets should be reported as a separate classification on the balance sheet, as they are assets that lack physical substance but have value to the business (such as patents, trademarks, copyrights, and goodwill). Reporting them separately allows users of the financial statements to better understand the nature and value of the assets.

Intangible Assets