Question

Intangible assets​ ______.

A. convey special rights from​ patents, copyrights,​ trademarks, and other creative works
B. represent assets for which the market value cannot be determined
C. are not recorded in the books because they have no physical substance
D. All of the statements are correct.

Answer 1

Intangible assets do convey special rights and are recorded in the company's financial statements, despite having no physical form. They include intellectual property like patents and copyrights which protect exclusive rights for a limited time.

Step-by-step explanation:

Intangible assets convey special rights from patents, copyrights, trademarks, and other creative works. They represent assets for which the market value can be difficult to determine, and contrary to one of the options, they are often recorded in the books even though they have no physical substance. This is because these assets have economic value through the exclusive rights and potential revenue streams they provide. Intellectual property is a key category of intangible assets, and it includes patents which may grant an exclusive legal right to make, use, or sell an invention, typically for a period of up to 20 years. Copyrights offer protection for literary and artistic works for potentially even longer. Knowledge of the exact time periods and provisions is important, as they vary across countries and can have significant effects on a business’s competitive advantage and profitability.

Answer 2

D. All of the statements are correct.

Step-by-step explanation:

Intangible assets: The assets which cannot be seen or even touched is called intangible assets. It has no physical existence.

The example - goodwill, and intellectual property rights like - copyrights, patents, trademarks, etc. Its value is difficult to determine

Moreover, it is shown under the assets side under the balance sheet.