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It encompasses the three main elements of the accounting equation – the assets, the liabilities and owner’s equity.
The assets are resources controlled by the enterprise as a result of past event which will give rise to future benefits for the company. And one of the good examples of assets is the intangible assets.
Intangible assets are identifiable, non-monetary asset without physical substance. It comprises of patents, licenses, contracts, copyrights and goodwill. The first four are identifiable intangible assets because they could be identified separately from the rest of the other assets while on the other hand, goodwill is not...
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