Intangible assets have three main characteristics: (1) they are identifiable, (2) they lack physical existence, and (3) they are not monetary assets.

Instructions

(a) Explain why intangibles are classified as assets if they have no physical existence.

(b) Explain why intangibles are not considered monetary assets.

(c) And, why does the accounting profession make a distinction between internally created intangible assets and purchased intangible assets?