Fundamental Payroll Certification (FPC) Practice Exam

Which of the following items is considered a tangible asset?

1. Goodwill

2. Trademark

3. Furniture

4. Patent

The correct answer is: Furniture

A tangible asset is a physical item that has a measurable value and can be touched or seen. Furniture fits this definition perfectly, as it consists of physical objects that can be used in a business setting, like desks, chairs, and tables. In contrast, the other options represent intangible assets. Goodwill is the value of a company’s brand reputation and customer relations, which cannot be physically touched. A trademark, while legally recognized and valuable, is also an intangible asset because it represents a brand’s identity and is not a physical product. Similarly, a patent refers to the legal rights to an invention or process, which again lacks a physical form. Therefore, furniture is categorized as a tangible asset due to its physical presence, making it the correct answer in this context.