The MegaHit Film Studio has a licensing right (or agreement)to distribute films produced by the Artsy Film Company.How would the MegaHit Company classify this licensing right on its balance sheet?
A)Tangible asset
B)Intellectual property asset
C)Intangible asset
D)Nonreported asset

Question

Quizplus · Accepted Answer

This licensing right is a form of intellectual property asset as it represents the legal right to distribute films produced by Artsy Film Company. As such, it should be classified as an intangible asset on the balance sheet.

The MegaHit Film Studio Has a Licensing Right (Or Agreement)to