Which of the following is not a tangible asset? (2024)

FAQs

Which of the following is not a tangible asset? ›

Brand acknowledgment, goodwill, and intellectual property rights like trademarks, patents, and copyrights, are all intangible assets.

Intangible assets are long-term assets, meaning you will use them at your company for more than one year. Examples of intangible assets include goodwill, brand recognition, copyrights, patents, trademarks, trade names, and customer lists.

Tangible assets are physical things. Examples include land, buildings, vehicles, furniture, and equipment. On the balance sheet, assets are recorded as current and long-term assets (non-current assets).

Expert-Verified Answer

The correct answer is D) trademarks and trade names. Trademarks and trade names are examples of intangible assets rather than tangible assets.

The intangible and often ephemeral things like rainbows, sunsets, light-beams, the play of sunlight, and fires are unlike the surfaces and objects of the world in that the perceptions are not invariant despite varying sensations of light (Gibson, 1963).

Tangible personal property includes equipment, supplies, and any other property (including information technology systems) other than that is defined as an intangible property. It does not include copyrights, patents, and other intellectual property that is generated or developed (rather than acquired) under an award.

The examples of intangible assets are: goodwill, patent, copyrights, trademarks.

Tangible assets include cash, land, equipment, vehicles, and inventory. Tangible assets are depreciated. Depreciation is the process of allocating a tangible asset's cost over the course of its useful life. An asset's useful life is the duration it adds value to your business.

An intangible asset is a non-physical asset such as a patent, brand, trademark, or copyright. Businesses can create or acquire intangible assets. An intangible asset like a brand name is considered indefinite. A legal contract or agreement is a definite intangible asset.

Which is not a tangible element? ›

Explanation: Geography, raw material, natural resources, population and technology are the tangible elements, whereas ideology, morale, leadership, personality, organisational efficiency and quality of diplomacy are the intangible elements.

The correct answer is Small tools. Small tools is not a fixed asset. ​It is pertinent to note that fixed assets are long-term assets. Small tools are something that company can easily replace any time.

The correct answer is option b) equipment.

Equipment is a tangible asset, as it is a physical item that has value and can be touched. In contrast, intangible assets are non-physical resources that have economic value, such as goodwill, copyrights, patents, and trademarks.

Inventory and stocks are tangible assets and come under the cost of goods sold. Cost of goods sold means cost of production of goods. Therefore, inventory used in production is entered in the cost of goods sold. Likewise, fixed assets such as machinery and equipment are other examples of tangible assets.

Other examples of non-current assets include tangible assets like land, buildings, and vehicles, as well as intangible assets like intellectual property and goodwill.