Intangible assets
A) are not reported on the balance sheet because they are expensed.
B) are not reported on the balance sheet because they lack physical substance.
C) should be reported as current assets on the balance sheet.
D) should be reported as a separate classification on the balance sheet.

Question

Quizplus · Accepted Answer

Intangible assets are reported on the balance sheet as a separate classification because they have value and contribute to the future income of the company, despite lacking physical substance. They are not expensed immediately (unless they have an indefinite life and cannot be reliably measured), not excluded from the balance sheet, and are typically classified as non-current assets, not current assets.

Intangible Assets