Worksheet content

What are intangible assets?

• Physical resources providing future economic value
• Non-physical resources providing future economic value
• Current liabilities requiring future cash outflows
• Tangible equipment used in production

What is the Big Ideas?

• Short-term operational goals
• Strategic intellectual assets driving competitive advantage
• Physical infrastructure for production
• Standard accounting procedures for revenue

How are Intangible assets classified?

• By liquidity and historical cost
• By identifiability and useful life
• By physical size and weight
• By geographic location and currency

What are the types of Intangible assets?

• Cash, inventory, and accounts receivable
• Land, buildings, and equipment
• Marketing, customer, artistic, contract, technology, and goodwill
• Common stock, retained earnings, and bonds

How do you determine the cost of intangible assets?

• By estimating the future market value
• By purchase price or specific capitalization criteria
• By dividing total revenue by total assets
• By using the current replacement cost

What is amortization?

• The accumulation of interest on debt
• The systematic allocation of cost over useful life
• The process of increasing an asset's book value
• The immediate expensing of all capital purchases

What is impairments?

• An increase in the fair market value of an asset
• A permanent decline in an asset's recoverable value
• The natural wear and tear of physical equipment
• The periodic revaluation of inventory

What are market related intangible assets?

• Inventory and work-in-progress
• Trademarks and brand names
• Corporate bonds and treasury bills
• Accounts payable and accrued expenses

What are customer lists?

• Internal payroll records
• Databases of client information providing future revenue
• Public directories of potential vendors
• Lists of physical retail locations

What is artistic-related intangible assets?

• Physical art galleries and museums
• Ownership rights to creative works
• Supplies used by graphic designers
• Manufacturing blueprints for machinery