Question

Patents A/c is _________.

• A. personal A/c
• B. intangible A/c
• C. nominal A/c
• D. both (a) & (b)

Answer 1

Answer: (B)

intangible A/c

Fixed Assets are of two types i.e.tangible assets and intangible assets.

Building, Furniture etc are tangible assets which can have physical existence.

Goodwill, Patents, Trademarks are considered as intangible assets which can not be physically seen but these are having a substantial value to the the business. Hence patents account is an intangible assets.