What are intangible assets best described as?

Intangible assets are best described as assets that lack physical substance but are still valuable due to the rights and privileges they confer to a company. These may include things like patents, copyrights, trademarks, and goodwill. They arise often from intellectual efforts or creativity and represent future economic benefits that a company expects to gain from them.

Unlike physical assets, such as machinery or buildings, intangible assets cannot be touched or seen, which is why they are classified separately in accounting. Their valuation often relies on estimates, and they can have significant implications for a company’s market value and competitive position. Understanding that intangible assets are tied to intellectual property and other non-physical resources is crucial for grasping how they contribute to a business's overall asset base.

The other options do not accurately reflect the nature of intangible assets; for instance, everyday transactions typically involve tangible assets, short-term nature does not apply to many intangible assets, and physical measurement is not applicable to these rights and privileges.