What are intangible assets?

Intangible assets are defined as non-physical resources that provide future economic benefits to a business. Examples include intellectual properties like patents, trademarks, copyrights, and goodwill. These assets are valuable because they can create competitive advantages, generate revenue, or help in brand recognition, despite not having a physical presence that can be touched or seen.

The other choices depict different types of assets that do not fit the definition of intangible assets. Physical assets, for instance, refer to tangible resources that have measurable value and can be seen or physically handled, such as buildings or machinery. Cash equivalents, on the other hand, are highly liquid assets that can be quickly converted into cash, which is also outside the scope of intangible assets. Finally, assets that fluctuate in market value can apply to both tangible and intangible assets but do not specifically characterize the nature of intangible assets themselves. Therefore, option B correctly identifies intangible assets as those that exist in a non-physical form, such as patents and trademarks.