What are Non-Physical Assets?
A non-physical asset or also often referred to as an intangible asset is an asset that a company holds, but is not physically available. Similar to other physical assets, these assets also have equal importance and it includes the company’s trademark, patents, copyrights, royalties, and obligations. The company’s reputation, goodwill, and brand equity are other examples of the company’s non-physical assets. However, these assets are not bought with the aim to be sold off as it’s necessary for a company’s operation.
What is an Asset? Definition, Types, and Examples
In our day-to-day life, we very often refer to many things as an asset, and this is because it’s a very generalized term. But in terms of business and accounts, an asset has a specific meaning which is further categorized into several parts. Usually, an organization describes an Asset as something that holds an economic value and can turn profitable for the organization in the future.