There is a range of items on the balance sheet that lack tangibility ' There are items such as a Short or long term accounts receivable b Prepaid expenses for rent or insurance c Deferred development expenses front R D activities d Internally ' developed patents copyrights, acquired patents copyrig...

a Short or longterm accounts receivable are treated as assets as they represent legally enforceable cash inflows These monetary cash inflows are clear ...

There is a range of items on the balance sheet that lack tangibility'. There are items such

Question:

There is a range of items on the that lack tangibility'. There are items such as:
a. Short- or long-term Prepaid expenses for rent or insurance
c. Deferred development expenses front R&D activities
d. Internally' developed patents/copyrights, acquired patents/copyrights
e. Franchise rights held by a franchisee (e.g., an operator of a McDonald’s restaurant)
f.
Required:
Explain why each of these items can be treated as assets.
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...