Which of the following items (that all generate future economic benefits, and whose costs can be measured reliably), is an intangible non-current asset? 1 Computer hardware owned by a business 2 Operating software that operates the computer hardware in (1) 3 A patent bought by a business 4 An extension to an office building owned by a business A All four items B 1, 2 and 4 only C 1 and 2 only D 3 only
hello Sir l consider the answer is 2 and 3 but has been taken only 3
why? furhermore,l need your explanation about whether software is tangible or intangible non-current asset?
Because the operating software is needed to operate the hardware, it is regarded as being part of the cost of the hardware and is therefore treated as a tangible asset – the hardware would be useless without the operating software (e.g. Microsoft Windows).