Which of the following is an example of an intangible asset?

Which of the following is an example of an intangible asset?

• A. Intellectual capital, customer relationships, brand value, and other soft assets.
• B. Cash and inventory.
• C. Machinery and land.
• D. Accounts payable.

Answer: (A)

Intangible assets are non-physical resources that still contribute to a company's value and future earnings. They include items like intellectual capital, customer relationships, brand value, and other soft assets because these lack physical form but have identifiable value and can be controlled by the company. Cash and inventory are tangible assets, machinery and land are tangible assets, and accounts payable is a liability. Thus, listing non-physical assets best represents an intangible asset.

Intangible assets are non-physical resources that still contribute to a company's value and future earnings. They include items like intellectual capital, customer relationships, brand value, and other soft assets because these lack physical form but have identifiable value and can be controlled by the company. Cash and inventory are tangible assets, machinery and land are tangible assets, and accounts payable is a liability. Thus, listing non-physical assets best represents an intangible asset.