Notes

Intangible assets: (invisible)

1. Legal fees – It is an intangible asset as it refers to the fees incurred in the

registration of trademarks and patents.
2. 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.
3. Licenses – refers to a right that is purchased to operate a business.
4. Trademark – refers to a legal right which protects the distinct identity of a company.
It can comprise of a name, logo, slogan, or anything that depicts a company’s unique
identity.
5. Franchises – refers to a license/permission granted by the owner, under certain
conditions, to produce or sell a product or service.
6. Goodwill – refers to the reputation of a company which is determined by its profits
and losses.
7. Copyrights – It is an intellectual property right obtained by a creator usually in the
fields of art, music, literary, etc, which restricts a person from publishing the content
without the consent of the owner.
8. Brand equity – refers to the value of the unique identity of a business. It can be
positive or negative.
9. Broadcast rights – refer to the rights obtained under a licensing agreement for
broadcasting a program.
10. Research & Development – includes the development of software and
technological innovations of a company.

Tangible assets: (visible)

1. Plant & Machinery – used to convert raw materials into finished goods. They are
recorded in the books of accounts at a depreciated value.
2. 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.
3. Land & Building – represents the ownership of a physical property of the business.
4. Equipments – used in the production activities of a business.
5. Furniture & Fixtures – refers to the movable equipment that is a part of the office
layout.
6. 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.
7. Marketable securities – refers to the stocks, bonds, shares which can be easily
converted into cash.
8. Investments – refers to a liquid asset that is purchased with an expectation of being
sold in the future.
9. Raw materials – refers to the tangible materials used for manufacturing goods.
10. Vehicles – The vehicles used by the proprietor such as a car or the trucks, tractors
used for the operating activities of a business.