Asked by Dustin Hansen on Jun 29, 2024
Verified
Which of the following would not be considered an intangible asset?
A) Goodwill
B) Patents
C) Research and development costs
D) Trademarks
Intangible Asset
An asset that lacks physical substance but is identifiable and provides economic benefits, such as patents or trademarks.
Research and Development
The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.
- Identify and classify intangible assets accurately.
Verified Answer
SH
Sinothile HlabisaJun 30, 2024
Final Answer :
C
Explanation :
Research and development costs would not be considered an intangible asset because they are expensed as incurred and do not meet the criteria for recognition as an intangible asset under accounting standards. Goodwill, patents, and trademarks are all examples of intangible assets that are recognized and reported on a company's balance sheet.
Learning Objectives
- Identify and classify intangible assets accurately.