BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following assets is not considered as Tangible asset:
A
Stock
B
Furniture
C
Cash
D
Goodwill
Explanation: 

Detailed explanation-1: -Explanation: An intangible asset is a resource that isn’t physical in nature. Brand acknowledgment, goodwill, and intellectual property rights like trademarks, patents, and copyrights, are all intangible assets.

Detailed explanation-2: -Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment.

Detailed explanation-3: -Goodwill is another example of an item of intangible nature which either arises on acquisition or is internally generated.

Detailed explanation-4: -Research Cost are not considered as an intangible asset in the balance sheet anymore.

Detailed explanation-5: -Goodwill is an intangible asset, but also a capital asset. The value of goodwill refers to the amount over book value that one company pays when acquiring another. Goodwill is classified as a capital asset because it provides an ongoing revenue generation benefit for a period that extends beyond one year.

There is 1 question to complete.