Practice question · Select all that apply
Which are intangible assets?
Hints
- The test is whether the asset has physical substance.
- One item on the list can be physically touched.
Show the answer
- A. Goodwill from an acquisition
- B. Brand recognition and trademarks
- D. A patent on a manufacturing process
Why
Patents, trademarks, and goodwill have no physical substance, they are intangible. A truck you can kick is tangible PP&E.
Practise Accounting for Assets
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
More questions on Accounting for Assets
- Under the conservatism principle, gains should be anticipated and recognised early.
- Complete the depreciation formula.
- Net book value is cost minus accumulated depreciation, and net realisable value is what the asset would…
- The current/non-current split turns on one year, which seems arbitrary. What does the boundary actually serve?
- Match each depreciation method to its pattern.
- A fully depreciated machine still produces daily. What does its zero book value actually mean?