Multiple Choice
Which of the following is a stockholders' equity account?
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1. Introduction to Accounting
Types of Accounting
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Which of the following assets is NOT considered an intangible asset?
A
Patent
B
Goodwill
C
Inventory
D
Trademark
Verified step by step guidance1
Step 1: Understand the concept of intangible assets. Intangible assets are non-physical assets that have value due to their intellectual or legal properties, such as patents, trademarks, goodwill, and copyrights.
Step 2: Review the examples of intangible assets provided in the problem. Patents, goodwill, and trademarks are all intangible assets because they lack physical substance and derive their value from legal rights or reputation.
Step 3: Identify the asset that does not fit the definition of an intangible asset. Inventory is a physical asset, meaning it has tangible substance and is used in the production or sale of goods.
Step 4: Confirm that inventory is classified as a tangible asset. Tangible assets are physical items such as machinery, buildings, or inventory that can be seen and touched.
Step 5: Conclude that inventory is NOT considered an intangible asset, as it does not meet the criteria of lacking physical substance and deriving value from intellectual or legal properties.
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