Intangible Asset

Definition: An asset with economic value but no physical substance, such as a trademark, contractual right, or qualifying goodwill.

Example

A business owns a trademark that contributes value even though it is not a physical object.

Keep the distinction clear

Intangible does not mean valueless, and not every beneficial quality is a separately recognized accounting asset. Compare it with land, buildings, and equipment.

Related terms

Tangible Asset · Goodwill · Asset

Keep studying

Corporation Sole, Sole Proprietorship, and Single-Owner Businesses

References: FREC Course II syllabus: investment concepts

Pronunciation (US): in-TAN-juh-bul AS-et (capitals show stress)

Pronunciation reference: Merriam-Webster