The MegaHit Film Studio has a licensing right (or agreement)to distribute films produced by the Artsy Film Company.How would the MegaHit Company classify this licensing right on its balance sheet?
A)Tangible asset
B)Research and development
C)Intangible asset
D)Fixed asset

Question

Quizplus · Accepted Answer

The licensing right is an intangible asset because it is not a physical asset and has no physical substance. It represents a legal agreement that gives the MegaHit Company the right to distribute films produced by the Artsy Film Company.

The MegaHit Film Studio Has a Licensing Right (Or Agreement)to