Question

Which of the following doesnotdescribe intangible assets?a.They lack physical existence.b.They are financial instruments.c.They provide long-term benefits.d.They are classified as long-term assets.

Answer 1

Option (b) does not describe intangible assets

Step-by-step explanation:

Intangible assets are not financial instruments, they lack physical existence. Some of the important intangible assets are trademarks, patents etc. Financial instruments such as bonds, stock, investments are not classified as intangible assets. Intangible assets are long-term because they provide service for over a period of years. Financial instruments derive their claim in the future whereas intangible assets are totally different, and the right to claim is on the spot.