Which of the following is an example of an intangible asset for a manufacturer of padlocks?
A) a patent on a titanium lock mechanism
B) money owed to the company by a superstore chain
C) a machine for forming the locks out of sheet metal
D) a warehouse for storing locks

Question

Quizplus · Accepted Answer

A patent is an example of an intangible asset for a manufacturer of padlocks as it represents a legal right to an invention, which can provide a competitive advantage and generate revenue through licensing or sales. Money owed to the company (B) is a type of accounts receivable and considered a tangible asset. The machine for forming the locks (C) is a tangible fixed asset, as it can be physically touched and has a useful life. The warehouse (D) is also a tangible fixed asset, used for storage and considered part of the company's property, plant, and equipment.

Which of the Following Is an Example of an Intangible