Intangible Assets
Intangible assets are non-physical resources that contribute long-term value to a business and are recognized on the balance sheet when they meet accounting criteria. Common examples include patents, trademarks, copyrights, licenses, software, and goodwill.
Example: After acquiring a software company, the buyer records the patents and trademarks as intangible assets on the balance sheet and begins amortization over their estimated useful lives.
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