An intangible asset
A) does not have physical substance, yet often is very valuable.
B) is worthless because it has no physical substance.
C) is converted into a tangible asset during the operating cycle.
D) cannot be classified on the statement of financial position because it lacks physical substance.

Question

Quizplus · Accepted Answer

An intangible asset is an asset that does not have physical substance, but it can be very valuable, such as goodwill, trademarks, patents, copyrights, and brand recognition. So, option A is the correct answer. The other options (B, C, and D) are incorrect because they do not accurately define an intangible asset.

An Intangible Asset