Question

Which of the following is a CORRECT statement about long-term assets? A. Long-term investments can never...

Which of the following is a CORRECT statement about long-term assets?

A. Long-term investments can never be sold by the company.
B. Intangible assets are long-term assets with no physical substance.
C. Accumulated depreciation increases the cost of fixed assets on the balance sheet.
D. Other long-term assets include supplies.

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Answer #1

Let us understand in brief,

A) most of the companies hold an investment with an intention to disposal of such investment in some foreseable futire. There when ever a company is holding is long term investment (I.e anticipated sale date is not within the next 12 months) are classified as investments available for sale

B) generally intangible assets are dont have any physical substance (I.e cannot be seen or touched) and also company recognise goodwill for more than one year

c) as we know that accumulated depreciation is the total value that the asset has been depreciated over it's useful life

D) in general supplies are classified as current asset in balance sheet

conclusion : By considering above statements the correct option is (B) intangible assets are long term assets with no physical substance

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