Question

Which of the following does not describe intangible assets?

a. They lack physical existence.
b. They are monetary assets.
c. They provide long-term benefits.
d. They are classified as long-term assets

Answer 1

Intangible assets lack physical existence and do not represent monetary assets or are classified as long-term assets.

Step-by-step explanation:

An intangible asset refers to an asset that lacks physical existence and cannot be touched or seen. It represents non-physical assets such as intellectual property, brand recognition, or customer loyalty. This excludes options (b) and (d) from the list.

Intangible assets do not have a monetary value assigned to them; instead, they provide long-term benefits to a company, such as increased revenue, competitive advantage, or improved market position. Therefore, option (b) is also not correct.

Based on this, the correct response is option (a), which correctly describes that intangible assets lack physical existence.