Word of the Week!
It’s Sunday again, and you know what that means…time for another word of the week! This week’s word/term is “intangible assets.” Intangible assets are things owned by a company that you cannot see or feel, but are very important to the operations of a company. One example of an intangible asset could be a trademark. A trademark allows a company to give itself an identity that cannot be copied by other corporations. Pepsi for example has a trademark on their red, white and blue ball symbol. The company has spent years making that symbol a recognizable representation of the company. There is obviously some value attached to the trademark that prevents other companies from using the Pepsi symbol, and therefore the company must account for this. Intangible assets are listed in the “Other Assets” category of the Balance Sheet. Other intangible assets include: patents, franchises or brands.
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