Which of the following is an example of an intangible asset?

Goodwill is considered an intangible asset because it represents the excess value of a company beyond its identifiable tangible and intangible assets. This value typically arises from factors such as brand reputation, customer relationships, and employee morale, which contribute to a company’s ability to generate income. Unlike physical assets such as inventory, land, or equipment, goodwill cannot be physically touched or seen, and it does not have a specific physical form. It is recorded on the balance sheet when a company acquires another company for more than the fair value of its net identifiable assets. This distinguishes goodwill from tangible assets, which have a clear physical presence and can be depreciated, while goodwill is subject to impairment testing instead.