Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Mining Rights come under which category of asset?

Options:

Intangible Fixed Assets

Tangible Fixed Assets

Capital Work-in-Progress.

Intangible Assets Under Development

Correct Answer:

Intangible Fixed Assets

Explanation:

The correct answer is option 1- Intangible Fixed Assets.

Mining rights are the rights that a business acquires from the government to carry out the mining process. It is an asset for the business but does not have a physical existence. Therefore, they are considered Intangible Assets.