Patents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as
A) current assets.
B) prepaid expenses.
C) fixed assets.
D) intangible assets.
E) owners' equity.

Question

Quizplus · Accepted Answer

Patents and copyrights are intangible assets because they do not have a physical existence but are valuable to the firm. Intangible assets are typically reported on the balance sheet as long-term assets under the category of intangibles, along with other assets like trademarks, goodwill, and brand recognition.

Patents and Copyrights Confer Value on a Firm but Do