Final answer:
Patents and copyrights are categorized as intangible assets, which are part of intellectual property rights that offer protection to innovators, typically for 20 years for patents and much longer for copyrights. The option (C) is correct.
Step-by-step explanation:
Patents and copyrights are classified as intangible assets in accounting terms. They are part of a broader category known as intellectual property, which implies ownership over ideas, concepts, or images rather than physical objects. Intellectual property laws vary by country, and organizations like the World Intellectual Property Organization (WIPO) work to harmonize these laws internationally.
Patents provide an exclusive right to make, use, or sell an invention, typically for 20 years, while copyright laws protect the author's rights over their literary and artistic works for a time that generally extends beyond the author's life plus several decades. These protections incentivize innovation by allowing creators the potential to earn monopoly profits during the protection period. Therefore, option (C) is correct.