What type of investments includes intellectual property and real estate?

Non-current assets are long-term investments that are not intended to be converted into cash within a year. This category includes various forms of property that a company or individual holds to generate future economic benefits. Intellectual property, such as patents and trademarks, represents value created by innovation and proprietary knowledge, making it a significant investment for many businesses.

Real estate is another prime example of a non-current asset, as it typically involves land, buildings, or properties held for investment purposes, rental income, or operational use over an extended period. These assets appreciate over time and can contribute substantially to an entity’s overall financial health.

In contrast, current assets are resources that are expected to be converted into cash or used within one year, such as cash, inventory, and accounts receivable. Liquid assets refer specifically to those that can be quickly converted to cash without a significant loss in value, such as stocks or cash itself. Trade assets generally relate to assets used in the context of production or trade, which do not encompass the broader categories mentioned in the correct choice. Thus, understanding these distinctions reinforces why non-current assets is the appropriate classification for investments in intellectual property and real estate.