Answered: Intangible assets are certain…

Intangible assets are certain nonphysical assets used in operations that confer on their owners' long-term righ privileges or competitive advantage. O True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

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Intangible assets are certain nonphysical assets used in operations that confer on their owners' long-term righ
privileges or competitive advantage.
O True
O False

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An intangible asset is an asset that has no physical substance. Although it is not an asset that can be seen or touched, intangible assets are also valuable to an entity, and can influence its long-term performance. Several types of intangible assets are encountered in practice such as patent and trademark. Following are the statements related to intangible assets: (i) A sign which distinguishes the goods and services of one entity from those of another. (ii) A form of protection provided by the law to authors of original creative works, including literary works, musical works, artistic works, films, sound recordings, and broadcasts. (iii) The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use. (iv) A method of marketing and distributing products and services based on a two-party contract. (v) An exclusive…