Which of the following is considered an intangible asset?

The correct answer identifies stocks and bonds as intangible assets because they do not have a physical presence. Intangible assets are non-physical assets that provide value due to their rights or privileges, such as intellectual property, brand recognition, or in this case, financial instruments like stocks and bonds that represent ownership or creditor relationships in businesses.

Stocks are shares of ownership in a company, while bonds are debt securities that signify a loan made by an investor to a borrower. Both hold value and can generate returns through dividends or interest, but they are not tangible, meaning they cannot be physically touched or seen like real estate, vehicles, or cash.

In contrast, real estate property, vehicles, and physical cash all qualify as tangible assets due to their physical nature. Tangible assets are items that have a measurable value and can be seen or touched, unlike intangible assets that exist primarily as rights or claims.