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 ...
In accounting, goodwill is an intangible asset associated with a business combination. Goodwill is recorded when a company acquires (purchases) another company and the purchase price is greater than 1) the fair value of the identifiable tangible and intangible assets acquired, minus 2) the liabili...
Give an example of an intangible asset. How to distinguish between tangible assets and intangible assets? What are the characteristics of an intangible asset? What are the main characteristics of intangible assets? What are the three major types of intangible assets, and how do...
Goodwill in business is anintangible assetthat's recorded when one company is purchased by another. It's the portion of the purchase price that's higher than the sum of the net fair value of all of the assets purchased in the acquisition and the liabilities assumed in the process. This d...
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 an Intangible Asset? Definition and Type What Is Accounts Payable? How the AP Process Works Accounts receivable FAQ What does it mean to be an account receivable? An account receivable refers to the money owed to a business by its customers for goods or services provided on credit. ...
Accounting for intangible assets has some unique requirements. You record intangible assets on the balance sheet. You only record an intangible asset if your business buys or acquires it. Also, the intangible asset must have an identifiable value and a long-term lifespan. You do not record inta...
Smart features made for your business. We've got you covered. See how it works Firm of the Future Expert advice and resources for today’s accounting professionals. Explore Content QuickBooks Support Get help with QuickBooks. Find articles, video tutorials, and more. ...
Amortization:Identifiable intangible assets are typically amortized over their useful life, impacting a company’s financial statements. Goodwill, however, is not amortized but tested annually for impairment. Accounting Standards:Companies must comply with accounting standards (such as IFRS or GAAP) when...
Assets in accounting are a medium through which one can undertake business, which is tangible or intangible in nature with a monetary value due to the economic benefits. Assets include property, plant and equipment, vehicles, cash or cash equivalent, accounts receivables, and inventory. The charact...