Question

Trade Mark is a/an ___________.

• A. intangible asset
• B. current asset
• C. nominal A/c
• D. personal A/c

Answer 1

Answer: (A)

intangible asset

There are mainly three types of accounts in accounting: Real, Personal and Nominal accounts. Personal accounts are classified into three subcategories: Artificial, Natural and Representative.

A trademark is an intangible asset legally preventing others from using a business's logo, name, or other branding. As a trademark are used to identify a specific type of business or service, they are important for businesses that want to protect their branding. A trademark's value for accounting purposes equals what its cost to acquire. A trademark is an intangible asset, as it's nonphysical item granting a business the legal right to exclusively use a logo or other item. This means it is reported on a business's balance sheet.