What are Intangible Assets?

According to W. Kenton (2020), a non-physical asset is referred to as an intangible

asset. Intangible assets include goodwill, brand awareness, and intellectual property like
as patents, trademarks, and copyrights. Tangible assets, like as land, vehicles,
equipment, and inventories, compete with intangible assets. Financial assets, such as
stocks and bonds, are also considered tangible assets because their value is derived
from contractual claims.

An intangible asset can be classified as either indefinite or definite. A company's brand

name is considered an indefinite intangible asset because it stays with the company for
as long as it continues operations. An example of a definite intangible asset would be a
legal agreement to operate under another company's patent, with no plans of extending
the agreement. The agreement thus has a limited life and is classified as a definite
asset.

While an intangible asset lacks the obvious physical worth of a factory or equipment, it
can be extremely valuable to a company and crucial to its long-term success. Coca-
Cola, for example, would not be nearly as successful if it weren't for the money
generated by brand recognition. Despite the fact that brand recognition is not a tangible
asset that can be seen or touched, it can have a significant impact on sales.

Reference: https://www.investopedia.com/terms/i/intangibleasset.asp