An intangible asset
A)derives its value from the rights and privileges it provides the company.
B)is worthless because it has no physical substance.
C)is converted into a tangible asset during the year.
D)cannot be classified on the statement of financial position because it lacks physical substance.

Question

Quizplus · Accepted Answer

Intangible assets derive their value from the rights and privileges they provide to a company, such as patents, trademarks, and copyrights, rather than from their physical substance.

An Intangible Asset