Intangible assets have two main characteristics: (1) they lack physical existence, and (2) they are not financial instruments. a. Explain why intangibles are classified as assets if they have no physical existence. b. Explain why intangibles are not considered financial instruments. 31 2. Under what circumstances is it appropriate to record goodwill in the accounts? How should goodwill, properly recorded on the books, be written off in accordance with generally accepted accounting principles? 33 34 35 AB 3. Why does the accounting profession make a distinction between internally created intangible assets and purchased intangible assets? 48 4. What are factors to be considered in estimating the useful life of an intangible asset? Intangible assets have two main characteristics: (1) they lack physical existence, and (2) they are not financial instruments. a. Explain why intangibles are classified as assets if they have no physical existence. b. Explain why intangibles are not considered financial instruments. 31 2. Under what circumstances is it appropriate to record goodwill in the accounts? How should goodwill, properly recorded on the books, be written off in accordance with generally accepted accounting principles? 33 34 35 AB 3. Why does the accounting profession make a distinction between internally created intangible assets and purchased intangible assets? 48 4. What are factors to be considered in estimating the useful life of an intangible asset