Question

Intangible assets

a. should be reported under the heading Property, Plant, and Equipment.
b. are not reported on the balance sheet because they lack physical substance.
c. should be reported as Current Assets on the balance sheet.
d. should be reported as a separate classification on the balance sheet.

Answer 1

Answer: OPTION D

Explanation: In simple words, intangible assets refers to those assets which does not have any physical existence but still are crucial for the operations of the organisation. Goodwill and patent rights are some of the examples of intangible assets.

These assets could be long term or short term therefore they are shown as a separate classification in the balance sheet.

Hence the correct option is D.