Which of the following is true about intangible assets?

Intangible assets are non-physical assets that hold value for a business, and one of the key characteristics of these assets is that they include items such as patents, trademarks, copyrights, and goodwill. These assets represent legal rights or competitive advantages that a company has acquired, which can generate future economic benefits. For instance, a patent grants an exclusive right to produce a particular product, while a trademark helps protect brand identity.

The other options do not accurately reflect the nature of intangible assets. Intangible assets do not have a physical presence, as indicated by the first choice. The appreciation of intangible assets can vary greatly, and they often do not follow the same predictable patterns of appreciation as tangible assets, hence the third choice is not generally applicable. Lastly, the quantification of intangible assets on the balance sheet can be complex and subjective, often requiring estimates and valuations that can be challenging to determine, which makes the fourth choice misleading. Thus, the recognition that intangible assets include patent and trademark values is the most accurate statement.