An intangible asset

A) derives its value from the rights and privileges it provides the company.
B) is worthless because it has no physical substance.
C) is converted into a tangible asset during the year.
D) cannot be classified on the statement of financial position because it lacks physical substance.

Intangible Asset

This is an asset that lacks physical substance, such as patents, trademarks, and goodwill, yet offers economic value to its owner.

Physical Substance

Refers to tangible assets that have a concrete form and can be touched, as opposed to intangible assets.

Rights

Entitlements or privileges granted, typically to shareholders, such as the right to buy additional shares in certain circumstances.