Intangible assets are generally considered long-term and theirvaluecan increase over time. An intangible asset like a brand name can be critical to a company's long-term success. Businesses can create or acquire intangible assets. For example, a company may create a mailing list of clients or ...
An intangible asset is an asset that you cannot touch, since it lacks physical substance. Accountants record intangible assets at their cost when they are acquired. Some intangible assets have a limited life and are amortized to expense over that life. Other intangible assets have an unlimited ...
An account receivable refers to the money owed to a business by its customers for goods or services provided on credit. It represents a financial asset and is recorded as a current asset on a company's balance sheet. What is an example of accounts receivable?
What Is an Intangible Asset? Anintangible assetis an asset, such as a trademark or copyright, with no physical presence. That contrasts withtangible assets, such as a building, a piece of machinery, or a fleet of trucks. For accounting and tax purposes, intangible assets can beamortized, wh...
What is a plant asset and what are alternate terminology for plant assets? What is the difference between tangible and intangible assets? Give an example of each. Define the term intangible asset. What is an intangible asset? Describe the Reporting of Plant and Intangible As...
Also, the intangible asset must have an identifiable value and a long-term lifespan. You do not record intangible assets that you create within your business. For example, your logo is an intangible asset that holds value. But, you created the logo within your business. You did not buy ...
Example of intangible assets in action Example: Technology Company Acquisition A large technology company acquires a smaller software firm for $100 million. The fair value of the smaller firm’s tangible assets (such as equipment and office space) is $20 million, and its identifiable intangible as...
property, for example). Their value can be calculated either by looking at the value of similar products on the market or by subtracting your company’s liabilities from its assets and then subtracting that number from its market value. The resulting amount is the value of your intangible ...
This means that whether you’ve used up your total deductible in the past year or not, at the start of next year, the amount will restart to what is stated in the plan. To better comprehend what a deductible is and how it works, let’s take a look at an example. ...
Another example of an invisible asset is Geico’s talking gecko, the insurance company’s trademarked lizard that has featured in many of its commercial advertisements. Even though the Nike swoosh and the Geico talking gecko generate no explicit revenue or income, they are valuable to these ...