Paralegal Advanced Competency Exam (PACE) Practice Exam

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Prepare for the Paralegal Advanced Competency Exam with confidence. Enhance your knowledge with a range of quizzes, multiple choice questions, and detailed explanations. Equip yourself with the skills necessary to excel in your paralegal career!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is considered an intangible asset?

Real estate properties
Equipment and machinery
Stock certificates and bonds
Cash in hand

The correct answer is: Stock certificates and bonds

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.