a) An intangible asset

is converted into a tangible asset during the operating cycle.

cannot be classified on the balance sheet because it lacks physical substance.

does not have physical substance, yet often is very valuable.

is worthless because it has no physical substance.

b) The relationship between current assets and current liabilities is important in evaluating a companys

liquidity.

profitability.

accounting cycle.

market value.

c) What is the order in which assets are generally listed on a classified balance sheet?

Current and long-term

Current; property, plant, and equipment; intangible assets; long-term investments

Current; long-term investments; property, plant, and equipment; intangible assets

Current; property, plant, and equipment; long-term investments; intangible assets