The term "intangible assets" is used in accounting to denote
A) current or noncurrent property items without physical characteristics.
B) assets with lesser economic significance because of the nature of such assets.
C) such items as patents,copyrights,and claims against customers which can be valued on a monetary basis.
D) properties without physical characteristics that have long-term effects on a business enterprise.

Question

Quizplus · Accepted Answer

The term "intangible assets" refers to assets that do not have a physical presence but have long-term effects on a business. This includes assets such as patents, trademarks, copyrights, and goodwill. Option A is incorrect because not all intangible assets are property items. Option B is incorrect because the economic significance of an asset is not determined by its nature but by its value to the business. Option C is partially correct, but not all intangible assets can be valued on a monetary basis.

The Term "Intangible Assets" Is Used in Accounting to Denote