Franchise rights, goodwill and patents are the examples of___________.

liquid assets

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tangible assets

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intangible assets

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current assets

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Solution

The correct option is B intangible assets
Intangible assets are those which have the financial value in the business but these are not visible. These assets can't be seen physically, can't be touched.
Examples are Goodwill, Patents, Trademarks, Copy rights etc.

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Similar questions

Q. Rights or economic benefits, such as franchises, patents, trademarks, copyrights, and goodwill that are not physical in nature are called _________.

Q. Goodwill accounts, patents account, trademarks account, copyrights account are examples of _____________.

Q. Franchising enables the franchiser to increase his goodwill and reputation by expanding his network.

Q. New partner gets two rights in the firm, right in assets and share in future profits. For right in assets he brings capital and for share in future profits he brings goodwill premium.

From the following particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also, show the workings clearly preparing the ledger accounts:

Balance Sheet of Bharat Gas Ltd. as on 31 Mar. 2016 and 31 Mar. 2017
Particulars	Note No.	Figures as the end of 2017 (Rs)	Figures as at the end of reporting 2016 (Rs)
II) Assets
1. Non-current Assets
a) Fixed assets
i) Tangible assets	1	12,40,000	10,20,000
ii) Intangible assets	2	4,60,000	3,80,000
b) Non-current investments	3	3,60,000	2,60,000

Notes	1	Tangible assets = Machinery
	2	Intangible assets = Patents

Notes

	Figures of current year	Figures of previous year

1. Tangible Assets
Machinery	12,40,000	10,20,000
2. Intangible Assets
Goodwill	3,00,000	1,00,000
Patents	1,60,000	2,80,000
	4,60,000	3,80,000
3. Non-current Investments
10% long term investments	1,60,000	60,000
Investment in land	1,00,000	1,00,000
Shares of Amartex Ltd.	1,00,000	1,00,000
	3,60,000	2,60,000

Additional Information:

(a) Patents were written-off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.

(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during the year was Rs. 1,40,000.

(c) On March 31, 2016, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2017.

(d) Amartax Ltd. paid Dividend @ 10% on its shares.

(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.

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Franchise rights, goodwill and patents are the examples of___________.

The correct option is B intangible assetsIntangible assets are those which have the financial value in the business but these are not visible. These assets can't be seen physically, can't be touched. Examples are Goodwill, Patents, Trademarks, Copy rights etc.

The correct option is B intangible assets
Intangible assets are those which have the financial value in the business but these are not visible. These assets can't be seen physically, can't be touched.
Examples are Goodwill, Patents, Trademarks, Copy rights etc.