Intangible Assets Quiz

An intangible asset is identifiable if it meets the definition of an intangible asset and its cost can be reliably measured. Additionally, it must be separable, meaning it can be sold, transferred, licensed, rented, or exchanged independently from the entity.

To control an intangible asset, an entity must have the power to obtain future economic benefits from it and restrict others' access to those benefits. This means they can use the asset to generate revenue and prevent others from benefiting from it.

A patent is an example of an identifiable intangible asset because it can be separated from the entity and sold, transferred, licensed, rented, or exchanged. It also has a measurable cost associated with acquiring it.

An entity controls an intangible asset if it has the power to obtain future economic benefits from the asset and restrict others' access to those benefits. This applies to intangible assets like trademarks, copyrights, and patents.

Intangible assets are non-physical, meaning you can't touch them, but they still have value. For example, a company's brand reputation is an intangible asset. Tangible assets are physical, like buildings, equipment, and inventory.

Separability is a key element of an identifiable intangible asset. It means the asset can be separated from the entity and sold, transferred, licensed, rented, or exchanged. For example, a brand name can be sold to another company.

Control over an intangible asset means the entity has the power to use the asset to generate economic benefits and prevent others from doing so. This is similar to owning a physical asset, but with intangible assets, the control is about access to benefits, not physical possession.

An intangible asset is identifiable if it meets the definition of an intangible asset and its cost can be reliably measured. This means the asset can be valued and recorded on the company's balance sheet.

A characteristic of control over an intangible asset is that the entity has the power to restrict others' access to the benefits flowing from the asset. This includes preventing others from using the asset to generate revenue or from benefiting from its value.

A distinguishing feature of an intangible asset is that it is non-physical, meaning it doesn't have a physical form. For example, a brand name is an intangible asset. Tangible assets, on the other hand, are physical, such as buildings or equipment.