Which of the following describes intangible assets?

Intangible assets are defined as non-physical assets that have value and are typically not tangible in nature, meaning they cannot be touched or seen like physical assets such as machinery or buildings. Examples include things like patents, trademarks, copyrights, and goodwill. These assets can provide long-term benefits to a company, contributing to its competitive advantage and operational efficiency.

The correct choice highlights the essence of intangible assets by focusing on their non-physical characteristics while recognizing that they hold intrinsic value for the business. Other options do not appropriately describe intangible assets—for instance, suggesting they are physical assets or emphasizing their depreciation ignores their fundamental characteristics. Intangible assets can appreciate in value or may be amortized over time, which is different from the general concept of assets losing value. Similarly, describing them as assets used solely for business transactions overlooks their broader significance and utility in various contexts within a company.