Which of the following is considered an intangible asset?

Intangible assets are non-physical assets that provide economic value to a company and cannot be touched or physically measured. Intellectual property, such as patents, trademarks, and copyrights, is categorized as an intangible asset because it represents legal rights and competitive advantages that are derived from ideas and creativity rather than from physical objects.

Patents, specifically, grant exclusive rights to inventors for a certain period, allowing them to capitalize on their inventions without competition. This exclusivity can lead to significant financial benefits and is often paramount to a company’s value and market position, thus solidifying its classification as an intangible asset.

In contrast, the other choices—office buildings, warehouse inventory, and office furniture—are tangible assets. They have a physical form and are counted as property that can be seen, touched, and used in operations. Therefore, the correct answer hinges on recognizing intellectual property, like patents, as a valuable non-physical resource that contributes to a company’s financial health.