Question

Intangible assets are

• A. items such as patents, copyrights, trademarks, licenses, franchises and other kinds of rights or things of value to a company, which are not physical objects.
• B. Amounts owed to a company that are going to be paid.
• C. the total of a company's long-term gains.
• D. cash easily converted to deposits.

Hint:

Intangible assets have value but no physical form. Examples include patents, copyrights, trademarks, goodwill, and franchises.

Answer 1

The Correct Option is A

Concept: Assets owned by a business can be classified into tangible assets and intangible assets. Tangible assets have a physical existence, whereas intangible assets do not possess any physical form but still provide economic value to the business.

Step 1: Understand the meaning of the term “intangible”.
The word “intangible” means something that cannot be touched or physically seen. Examples include: \[ \text{Patents, Copyrights, Trademarks, Licenses} \] These assets provide legal rights and future economic benefits.

Step 2: Examine the given options.
Option (A) describes assets that have value but no physical existence. Options (B), (C), and (D) refer to receivables, gains, or cash-related items and therefore do not define intangible assets.

Step 3: Identify the correct definition.
Since patents, copyrights, trademarks, and franchises are examples of non-physical business assets, Option (A) correctly defines intangible assets. Therefore, \[ \boxed{\text{Option (A)}} \] is the correct answer.