?DISTINGUISH AND DESCRIBE THE TANGIBLE ASSETS & INTANGIBLE ASSETS
Assets which are not found in physical form but regarded as an asset in the eyes of accounting are called intangible assets. Assets such as furniture, machinery etc., are physically touchable, hence called tangible assets. The concept behind intangible assets is very logical. Hundreds of businessmen in Pakistan would be ready to purchase at a very high cost the brand name Pepsi –cola and sell their own water using that brand name. Should that brand name not be an asset for Pepsi-cola who can charge a million of rupees to others just for allowing them to use it? Of course, it should be. This is the concept behind the intangible assets and that is why patents, trademarks and goodwill are treated as assets.