Paralegal Advanced Competency Exam (PACE) Practice Exam 2026 - Free PACE Practice Questions and Study Guide

Intangible assets are non-physical assets that have value due to the rights and privileges they confer to their holders. Stock certificates and bonds fall into this category because they represent ownership or a claim to a financial asset rather than having a physical form. The value of these assets derives from the contractual rights associated with them, such as claims to dividends or interest payments.

On the other hand, real estate properties are tangible assets since they have a physical presence and can be touched or seen. Equipment and machinery are also tangible assets, as they can be physically utilized in production or operation. Cash in hand is classified as a liquid asset, which is also tangible and represents physical currency that can be readily used for transactions. The distinction in these categories highlights the unique characteristics of intangible assets compared to tangible ones, reinforcing the definition and examples of intangible assets like stock certificates and bonds.