Which of the following is not an example of a tangible asset?Multiple ChoiceFranchise rightsOffice buildingManufacturing equipmentCopy machine

Break Down the Problem

1. Identify the options given in the question

   • Franchise rights
   • Office building
   • Manufacturing equipment
   • Copy machine

2. Understand the definition of tangible assets

   • Tangible assets are physical items that can be touched, such as property, machinery, or equipment.

Relevant Concepts

1. Tangible Assets: Physical assets that have a monetary value and can be physically touched.
2. Intangible Assets: Non-physical assets that represent a value, such as trademarks, patents, or franchise rights.

Analysis and Detail

1. Franchise Rights: This is an agreement that allows one party to use the brand and business model of another party. It is a legal agreement and does not have a physical presence, making it an intangible asset.
2. Office Building: A physical structure that can be touched and has a monetary value, so it is a tangible asset.
3. Manufacturing Equipment: Equipment used in the production process. It is a physical item, hence a tangible asset.
4. Copy Machine: A physical device used to copy documents. It can also be touched and is therefore a tangible asset.

Verify and Summarize

• The only item among the options that does not fit the definition of a tangible asset is Franchise rights, which is an intangible asset.

Final Answer

Franchise rights is not an example of a tangible asset.