Patents and Copyrights fall under which of the following category of assets in the Balance Sheet of a company?

Intangible Assets

The correct answer is option 3- Intangible Assets.

An intangible asset is an asset that is not physical in nature. Goodwill, brand recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist in opposition to tangible assets, which include land, vehicles, equipment, and inventory.

OTHER OPTIONS-

1. Current Assets- Current assets include assets that are expected to be converted into cash or used up within one year. These may include cash and cash equivalents, accounts receivable, inventory, and short-term investments
2. Tangible assets- Tangible assets are physical assets that have a finite monetary value and usually hold economic value for a company. These assets can include property, plants, equipment, machinery, vehicles, and furniture.
3. Fictitious Assets- Fictitious assets do not have a physical existence. They represent expenses or losses that have been incurred but are not yet recognized. Examples of fictitious assets may include preliminary expenses, deferred revenue expenditure, and accumulated losses.