Match these terms with their correct definition.
-Represent future economic benefit to the company but they lack physical substance
A)Franchise
B)Intangible operating assets
C)Natural resources
D)Operating assets
E)Organizational costs
F)Property, plant, and equipment
G)Trademark
H)Voluntary disposal

Question

Quizplus · Accepted Answer

Intangible operating assets represent future economic benefit to the company but they lack physical substance. This includes things like patents, copyrights, and trademarks.

Answer: C
 Natural resources refer to assets like oil, gas, and timber that have physical substance and can be used to generate future economic benefit.

Answer: D
 Operating assets are used in the day-to-day operations of a business, such as inventory, accounts receivable, and cash.

Answer: E
 Organizational costs are expenses that a business incurs when it is first established, such as legal fees and incorporation costs.

Answer: F
 Property, plant, and equipment refer to tangible assets like buildings, machinery, and vehicles that a business uses to generate future economic benefit.

Answer: G
 A trademark is a type of intangible asset that gives a company exclusive rights to use a particular name, symbol, or design.

Answer: H
 Voluntary disposal refers to the process of a company selling or otherwise disposing of an asset, usually because it is no longer useful or profitable.

Match These Terms with Their Correct Definition