Intangible assets

Question

Intangible assets

Quizplus · Accepted Answer

Intangible assets should be reported as a separate classification on the balance sheet as they are non-physical assets that have value and contribute to the company's overall worth. They cannot be reported under Property, Plant, and Equipment as they do not have a physical existence like buildings or machinery. They are also not reported as current assets as they do not meet the definition of a current asset which has a short-term nature and is expected to be converted into cash within a year.

Intangible Assets