An intangible asset
A) derives its value from the rights and privileges it provides the owner.
B) is a liability because it has no physical substance.
C) is never amortized because it has an indefinite life.
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, rather than from their physical substance.

An Intangible Asset