Copyright is a/an ______.
Last updated Jun 24, 2026
Correct Answer:
Option A —
Asset
Why is it an Asset?An asset is any resource owned by a business that has value and can produce future financial benefits. Copyrights qualify because:
Ownership: The business has the legal right to the creative work.
Future Income: It can generate revenue through sales, licensing, or royalties.
Duration: It usually provides value for many years, making it a Non-Current (Fixed) Asset.
Why the other options are incorrect:
B) Liability: A liability is something you owe to others (like a loan). A copyright is something you own.
C) Expense: While the cost of acquiring a copyright is "amortized" (spread out) as an expense over its useful life, the copyright itself is an asset.
D) Profit: Profit is the surplus remaining after deducting expenses from revenue. A copyright helps generate profit, but it isn't profit itself.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
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