Final answer:
A debit is made to intangible assets when a company gains the right to provide exclusive services. These rights are a quantifiable economic benefit reflected in the company's financial statements similar to exclusive dealing agreements.
Step-by-step explanation:
A debit to intangible assets is recorded if a company is granted permission to provide exclusive services to a particular area. This is because the right to provide these services is an economic benefit to the company that can often be quantified and must be accounted for on the financial statements. Acquiring an exclusive service area agreement can be likened to obtaining an exclusive dealing agreement, such as when companies like Ford Motor Company sell to only their dealers, or satellite radio services such as SiriusXM offer subscriptions, making the service excludable to non-subscribers.