What type of assets can be classified as intangible?

Intangible assets are non-physical assets that provide value to a company over time, typically related to rights or privileges. They are distinguished from tangible assets, which have a physical presence.

The correct answer, which identifies intellectual property rights owned, highlights a key characteristic of intangible assets: they include items such as patents, trademarks, copyrights, and trade secrets. These assets can generate future economic benefits for a company but do not have a physical form. For instance, a patent allows a company to exclusively produce and sell a product, which can directly impact its revenue potential.

Other asset types mentioned in the choices have a physical presence or are classified differently. Cash and property, plant, and equipment are classified as tangible assets, while physical goods available for sale can be categorized as inventory. This distinction is crucial in financial accounting as it impacts how assets are reported and valued on the balance sheet, influencing financial analysis and decision-making.