The term "intangible assets" is used in accounting to denote
A) current or noncurrent property items without physical characteristics.
B) assets with lesser economic significance because of the nature of such assets.
C) properties without physical characteristics that have long-term effects on a business enterprise.
D) such items as patents, copyrights, and claims against customers which can be valued on a monetary basis.

Question

Quizplus · Accepted Answer

Intangible assets are properties without physical characteristics that have long-term effects on a business enterprise, such as patents, copyrights, and trademarks. They cannot be touched, felt or seen like physical assets, but they have value and are important for a company's long-term success. Option A includes both current and noncurrent property items, some of which may have physical characteristics, and may not necessarily be intangible. Option B is incorrect as the economic significance of an asset is not based on whether it is tangible or intangible. Option D is partially correct, but not inclusive enough as intangible assets also include items such as customer relationships, goodwill, and brand recognition, which may not have a specific monetary value.

The Term "Intangible Assets" Is Used in Accounting to Denote