New 55% Off on All Courses - Enroll Now! Click Here

    Question

    Which of the following is an example of an intangible

    asset?
    A Land Correct Answer Incorrect Answer
    B Buildings Correct Answer Incorrect Answer
    C Capital WIP Correct Answer Incorrect Answer
    D Patents Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Intangible assets are non-physical assets that lack a physical substance but hold value for a company. A patent is an exclusive right granted for an invention. Patents benefit inventors by providing them with legal protection of their inventions.A patent is an intangible asset because it doesn't have a physical form, but instead provides long-term value to the owner.Unlike tangible assets such as land, buildings, and machinery, patent is not a physical asset but is crucial in assessing a company's overall worth.

    Practice Next

    Relevant for Exams: