Which item is an example of an intangible asset?

Which item is an example of an intangible asset?

• A. Cash
• B. Patents and copyrights
• C. Accounts receivable
• D. Vehicles

Answer: (B)

Intangible assets are non-physical resources that still provide long-term value through rights or privileges. Patents and copyrights fit this because they grant exclusive rights that can generate future revenue, even though you can’t touch them. In accounting, these rights are recorded at cost and amortized over their useful life to reflect their gradual value use. Cash is a physical medium of money, vehicles are tangible property you can touch and use, and accounts receivable are financial claims on other people or entities. These are classified as tangible or financial assets rather than intangible assets.

Intangible assets are non-physical resources that still provide long-term value through rights or privileges. Patents and copyrights fit this because they grant exclusive rights that can generate future revenue, even though you can’t touch them. In accounting, these rights are recorded at cost and amortized over their useful life to reflect their gradual value use.

Cash is a physical medium of money, vehicles are tangible property you can touch and use, and accounts receivable are financial claims on other people or entities. These are classified as tangible or financial assets rather than intangible assets.