Question

Which of the following is not a characteristic of intangible assets?(a)They lack physical existence.(b)They are not financial instruments.(c)They are long-term in nature.(d)They are all subject to amortization.

Answer 1

Answer: Option C

Explanation:

A. Assets with physical existence are called tangible assets.

B. There are several financial instruments that lacks physical substance but are not considered as intangible assets.

C. Intangible assets can be either long term or short term.

D. Only those intangible assets that have definite lives are amortized, others with indefinite life are not.