List of Tangible and Intangible Assets
|Intangible Assets||Tangible Assets|
|1. Legal Fees||1. Plant & Machinery|
|2. Patents||2. Cash & Cash Equivalents|
|3. Licenses||3. Land & Building|
|4. Trademarks||4. Equipment|
|5. Franchises||5. Furniture & Fixtures|
|6. Goodwill||6. Inventory|
|7. Copyrights||7. Marketable Securities|
|8. Brand Equity||8. Investments|
|9. Broadcast Rights||9. Raw Materials|
|10. Research & Development||10. Vehicles|
Intangible assets: (invisible)
- Legal fees – It is an intangible asset as it refers to the fees incurred in the registration of trademarks and patents.
- Patents – A patent is an exclusive right that is granted to an inventor by law which permits them to exclude anyone from producing, using, or selling their invention for a given period.
- Licenses – refers to a right that is purchased to operate a business.
- Trademark – refers to a legal right that protects the distinct identity of a company. It can comprise of a name, logo, slogan, or anything that depicts a company’s unique identity.
- Franchises – refers to a license/permission granted by the owner, under certain conditions, to produce or sell a product or service.
- Goodwill – refers to the reputation of a company which is determined by its profits and losses.
- Copyrights – It is an intellectual property right obtained by a creator usually in the fields of art, music, literature, etc, which restricts a person from publishing the content without the consent of the owner.
- Brand equity – refers to the value of the unique identity of a business. It can be positive or negative.
- Broadcast rights – refer to the rights obtained under a licensing agreement for broadcasting a program.
- Research & Development – includes the development of software and technological innovations of a company.
Tangible assets: (visible)
- Plant & Machinery – used to convert raw materials into finished goods. They are recorded in the books of accounts at a depreciated value.
- Cash and Cash equivalents – It refers to the cash in hand and cash at bank. The cash equivalents are usually stated at the value they are convertible into cash.
- Land & Building – represents the ownership of a physical property of the business.
- Equipment – used in the production activities of a business.
- Furniture & Fixtures – refers to the movable equipment that is a part of the office layout.
- Inventory – refers to the valuable items which are usually stored in a warehouse with a plan of being sold or utilized in the process of production.
- Marketable securities – refers to the stocks, bonds, shares that can be easily converted into cash.
- Investments – refers to a liquid asset that is purchased with an expectation of being sold in the future.
- Raw materials – refers to the tangible materials used for manufacturing goods.
- Vehicles – The vehicles used by the proprietor such as a car or the trucks, tractors used for the operating activities of a business.
>Related Long Quiz for Practice Quiz 26 – Intangible Assets
>Related Long Quiz for Practice Quiz 32 – Tangible Assets