The MegaBuck movie studio's name has become famous for adventure movies.Another studio once offered to buy the name for $20 million,but MegaBuck turned down the offer.The MegaBuck balance sheet will show:
A)The company's name under Other Assets,valued at $20 million.
B)The company's name under Other Assets,valued conservatively at $10 million.
C)The company's name under Accounts Receivable,valued at $20 million.
D)The company's name will not be shown as an asset on the balance sheet.

Question

Quizplus · Accepted Answer

The company's name, though famous, is an intangible asset and cannot be physically measured or quantified. Therefore, it cannot be included as an asset on the balance sheet.

The MegaBuck Movie Studio's Name Has Become Famous for Adventure