Question

An intangible asset
a. derives its value from the rights and privileges it provides the owner.
b. is worthless because it has no physical substance.
c. cannot be classified on the balance sheet because it lacks physical substance.
d. is converted into a tangible asset during the operating cycle.

Answer 1

Answer:

a. derives its value from the rights and privileges it provides the owner.

Explanation:

The intangible asset are those assets that cannot be touched or seen that means it does not have any physical substance

In this, the amortization expenses are recognized.  

The intangible assets consist of patents, copyrights, goodwill, and other intellectual proprieties.        

Moreover, it is categorized on the asset side of the balance sheet

and the operating cycle contains only days inventory outstanding + days sale outstanding so the intangible asset does not relevant.