BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stock
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Furniture
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Cash
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Goodwill
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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.