Question

Select the financial statement on which the user would most likely find the answer to the question given. (Select all that apply.) Did the company purchase any intangible assets during the year?

Answer 1

Answer: Balance sheet

Explanation:

Intangible assets are recorded in the balance sheet along with other assets. Specifically, they are recorded as fixed assets because they represent assets that last for more than a year.

To see if any intangible assets have been purchased in a year therefore, one needs to take a look at the balance sheet to see if the Intangible asset balance has increased from the previous year. If it has then some new intangible assets were purchased.