Question

Intangible assets are the rights and privileges that result from ownership of long-lived assets that:
a. must be generated internally.b. are depreciated over their useful life.c. have been exchanged at a gain.d. do not have physical substance.

Answer 1

Answer:

d. do not have physical substance.

Explanation:

The total assets comprise of current assets, fixed assets, and the intangible assets

The current assets include cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, and other intellectual properties

For the intangible assets, the amortization expense is considered, not the depreciation expense and the same is to be taken.

Like for goodwill, the impairment test is considered. These intangible assets have no physical substance that means they are not seen or even touched. It is not tangible in nature